UBS downgraded Aena due to concerns about future profitability and growth, leading to negative impact.

From Investing.com: 2024-12-11 09:27:28

Shares of Aena SME SA (BME:) dropped after UBS downgraded the stock to “neutral” from “buy.” Analysts cited concerns about future profitability and growth, with a projected EBITDA growth rate of just 2% for 2024-2028. Tariff reductions starting in 2027 and increased capital expenditures pose challenges, leading to a decline in FCF yield by 2027.

UBS highlighted potential hurdles from construction projects and low free cash flow yields. Despite valuation metrics at a discount, skepticism remains about a re-rating in the short term due to slower EBITDA growth and regulatory uncertainties. Positive factors include growth in retail revenue but may be offset by lower guarantee revenues.

Aena, a major player in global aviation, operates 46 airports in Spain and international assets. Despite a competitive dividend yield, UBS’s cautious outlook led to a slight increase in the 12-month price target but maintained the “neutral” rating.



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