"One of the most defensive names", UBS starts Enav with 'buy'

Enav SpA

26/10/2022 11:34

** UBS initiates coverage of Enav  ENAV.MI  with "buy",
saying the air traffic control company provides inflation
protection and dividend upside, despite the current
macroeconomic scenario 
    ** The broker says the group benefits from a stable
regulatory framework limiting exposure to traffic risk and
automatic price indexation, which allows it to pass inflationary
pressure straight to airlines through higher tariffs
    ** UBS forecasts ENAV will generate cumulative free cash
flow of EUR 1.3 bn over 2023-28E, providing potential upside to 
shareholder returns or M&A optionality
    ** It sees a dividend of 0.21 euro per share over the period
2022 to 2024, up from 0.11 euro per share in 2021, or, in
absence of any merger, a cumulative dividend of 2.65 euro in the
years 2023 to 2028
    ** Enav is the sole provider of air traffic control services
in and around Italy with over 95% of group revenues derived from
the regulated business
    ** Out of 9 analysts that cover Enav, six rate the stock
"strong buy" or "buy", ​three rate "hold"
 (Reporting by Romolo Tosiani)
 ((Romolo.tosiani@thomsonreuters.com))