Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
Investing.com - Jefferies has upgraded Fraport (ETR:FRAG) AG Frankfurt Airport Services Worldwide (FRA:FRA) (OTC:FPRUY) from Underperform to Hold, while raising its price target to EUR70.00 from EUR52.00. The stock, currently trading at $42.44, has shown remarkable momentum with a 73.22% gain over the past year and is currently trading near its 52-week high.
The upgrade comes as Jefferies acknowledges that top-line headwinds facing the airport operator are being more than offset by tighter capital expenditure control and approaching free cash flow inflection. According to InvestingPro data, the company operates with a debt-to-equity ratio of 2.55, highlighting the importance of careful capital management.
Jefferies has updated its valuation to reflect these improvements, lifting Frankfurt’s implied multiple by approximately 10% and slightly increasing its EBITDA estimates by 2-3%.
The research firm remains cautious on traffic and costs, particularly for 2026, where its estimates remain below consensus.
Despite these concerns, Jefferies sees few catalysts that would override the free cash flow momentum at this stage, supporting the Hold rating.
In other recent news, Deutsche Bank (ETR:DBKGn) analysts upgraded Fraport AG Frankfurt Airport Services Worldwide stock from a Sell to a Hold rating. The analysts increased the price target from €40 to €50, reflecting a shift in market focus toward potential growth opportunities. Despite the stock’s 37% rise since August 2024, earnings per share forecasts for 2025 and 2026 have been adjusted downward by 14% and 21%, respectively. The analysts highlighted that while several downside risks are well-known, there is optimism about growth driven by German fiscal measures. These developments provide investors with insights into the current market sentiment surrounding Fraport AG.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.