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On Wednesday, Jefferies began coverage on Flughafen (VIE:VIEV) Zurich AG (FHZN:SW) (OTC: UZAPF), assigning the airport operator a Hold rating and setting a price target of CHF 236.00. The new price target comes as the company’s stock multiples are perceived to be full, trading at approximately a 5% premium compared to its industry peers.
The initiation of coverage follows the November approval of the rollover mechanism, which has been a factor in the re-rating of the company’s shares. Jefferies anticipates a potential price cut for Flughafen Zurich, but also acknowledges the increasing likelihood of a deal with airlines, which the market seems to have already priced in.
The analyst firm expects Flughafen Zurich’s cash yield to improve as the company increases its payout, a forecast that is more optimistic than the consensus. This improvement is anticipated despite the valuation reflecting a high level of market optimism, which carries the risk of disappointment.
Based on an estimated dividend yield of 2.9% for the year 2025, Jefferies views the risk-reward profile for Flughafen Zurich as balanced, leading to their decision to initiate coverage with a Hold rating and a CHF 236 price target.
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