Fraport falls as UBS downgrades to 'sell' on overly optimistic forecast

Fraport Frankfurt Airport Services Worldwide AG

19/11/2025 10:10

** Shares in German airport operator Fraport FRAG.DE down 3% after UBS cuts to "sell" from "neutral"

** Brokerage says co's current free cash flow mid-term forecast as "overly optimistic" and sees it 50% lower than consensus for fiscal year 2026-27

** With the company exiting a "heavy capex investment phase", UBS believes free cash flow expectations underestimate negative factors including subsidiary dividends, minority payments, rising cash interest and taxes, and non-repeatable working capital inflows

** UBS cites uncertainty due to factors like Lufthansa's strategy, weak retailer performance, ground handling competition and Lima airport regulation

** The broker sees Fraport's valuation premium as "unjustified"

** Eight of 21 analysts rate Fraport "strong buy" or "buy", ten "hold" and three "strong sell" or "sell" - LSEG data

 (Reporting by Emanuele Berro)

 ((emanuele.berro@thomsonreuters.com))