Morgans feels the rejection of the $8.25 takeover offer is a signal of optimism for the future by Sydney Airport’s board. It’s suspected this is not the last takeover approach, while the share price languishes due to covid.
The broker agress with management comments around the quality of the company. These include its strong performance prior to the sharp negative impact of covid on its volumes and earnings and the strong balance sheet. Morgans’ Hold rating and $8.25 target are maintained.
Sector: Transportation.
Target price is $8.25.Current Price is $7.81. Difference: $0.44 – (brackets indicate current price is over target). If SYD meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
