DB upgrades Fraport to 'hold' on priced-in risks, expected stimulus boost

Fraport Frankfurt Airport Services Worldwide AG

06/06/2025 10:10

** Deutsche Bank upgrades German airport operator Fraport FRAG.DE to "hold" from "sell" and says downside risks are priced into the stock price

** The broker says that issues Fraport is facing, including limited airline capacity growth, high leverage and a decline in consumer confidence, are well known

** At the same time, markets are seeing long-term growth potential as result of the German fiscal stimulus, DB adds

** It projects traffic growth of 2% for 2025, 3.4% for 2026 and 4.9% for 2027, citing multiplier effects, while factoring in the impact of higher bund yields on earnings

** Shares of Fraport are up 2.8% in morning trade, the top gainers on Germany's mid-cap index .MDAXI

** Out of 23 analysts that cover Fraport, 13 rate it "strong buy" or "buy", ​eight "hold" and two​ "strong sell" or "sell" - LSEG data

 (Reporting by Simon Ferdinand Eibach)

 ((Simonferdinand.eibach@thomsonreuters.com))