Credit Suisse raises its rating for Auckland International Airport to Outperform from Neutral in the expectation of strong post-pandemic travel and the potential for higher pricing.
This comes as the NZ government removes the 10 day self-isolation period for NZ citizens and highly skilled workers, and in anticipation of opening to Australia (July) and the rest of the world in October.
The analyst feels the Commerce Commission may judge airports as higher risk than pre-covid, and allow the company to set higher aeronautical pricing in the next regulatory period. The target price rises to $7.50 from $6.90.
Sector: Transportation.
Target price is $7.50.Current Price is $6.77. Difference: $0.73 – (brackets indicate current price is over target). If AIA meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
