Morningstar lowers estimate on NZ's largest airport, Auckland International

Auckland International Airport

31/07/2024 21:34

** Analysts at Morningstar lower fair value estimate on
Auckland International Airport  AIA.NZ  by 9% to NZ$8
    ** Says estimate downgrade due to higher capital expenditure
expectations from co
    ** Sees New Zealand's largest airport to spend nearly NZ$7
bln ($4.17 bln) over the next five fiscal years, less than NZ$2
bln over the last five
    ** Brokerage, however is impressed with AIA's potential
investments in sizable projects; expects return on capital to
exceed the average cost of capital by the end of next decade
    ** Assigns Auckland Airport a Morningstar Uncertainty Rating
of "low" from "medium"
    ** Expects AIA to need either equity or debt or both in the
next few years to complete planned expansion and investments
    ** Adds shares at current level look undervalued; AIA's
shares at NZ$7.48 as of last close, down 15% YTD


($1 = 1.6798 New Zealand dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))