Jefferies sees gradual recovery for Auckland International Airport

Auckland International Airport

Mon 23:26

** Jefferies sees a gradual recovery for New Zealand's Auckland International Airport AIA.NZ, noting that airlines could favour yields over capacity in the near term
** Retains 'hold' with a target price of NZ$8.49
** Brokerage says there were green shoots for capacity additions, but these were derailed by the Middle East conflict
** With the peace deal in place, the focus will shift to the pace of passenger and capacity recovery over the next 6-12 months, though uncertainty around capacity remains significant - Jefferies
** While a resolution to the Middle East conflict in the near term could prompt capacity adjustments, airlines may prioritize yields and balance sheet repair, particularly on Trans-Tasman routes, which account for about 42% of international capacity - brokerage
** Two of seven analysts rate the stock "buy" or higher, four "hold", and one "sell"; their median price target is NZ$8.58, as per data compiled by LSEG

 (Reporting by Anjali Singh in Bengaluru)
 ((anjali.singh2@thomsonreuters.com;))