Stifel upgrades Aeroports de Paris stock—CEO change and tax relief in focus

Published 19/11/2024, 10:18
Stifel upgrades Aeroports de Paris stock—CEO change and tax relief in focus

On Tuesday, Aeroports de Paris (ADP:FP) (OTC: ARRPY) stock received an upgrade from Stifel from a Hold to a Buy rating, with a new price target set at €148.00, up from the previous €130.00. Stifel's analysis indicates that the company, which has been lagging behind its peers for almost two years due to specific company and macroeconomic risks, is poised for a potential turnaround.

The firm points out that Aeroports de Paris could see these negative factors diminish soon, with an expected change in its CEO by January 2025 and full compensation for the infrastructure tax starting in April 2025. Additionally, Stifel suggests that the market has not fully appreciated the value of the group's stake in GMR Airports.

Despite the possibility of ongoing country-specific risks, Stifel believes that improvements in GMR's fundamentals and communication could further bolster Aeroports de Paris's share price.

The firm outlines a two-pronged path to unlocking value: firstly, the abatement of risks and positive earnings momentum could trigger a rebound and re-rating in the fiscal year 2025, and secondly, a better recognition of GMR's value could drive long-term growth for the group.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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