Citi lowers FY23 earnings estimate for Auckland International Airport

Global Brokerage

09/06/2023 02:06

** Analysts at Citi lower Auckland International Airport's
 AIA.NZ  FY23 EPS estimate by 10% on slower traffic recovery,
but increase estimate for FY24 and FY25 EPS by 25% to reflect
better regulatory pricing
    ** Brokerage hikes PT to NZ$8.78 from NZ$7.82; upgrades
rating to "neutral" from "sell"
    ** The country's biggest airline said it would raise airline
charges over the next five years, in a move opposed by major
users Air New Zealand  AIR.NZ  and Qantas Airways  QAN.AX  
    ** Earnings upside from higher pricing is offset by higher
finance costs, resulting in our FY25 EBITDA increasing by 7.9%,
while our NPAT is only up by 2.8%, says brokerage Jefferies 
    ** Jefferies raises PT on AIA to NZ$9.17 from NZ$8.91,
retains "hold" rating 
    ** Shares of New Zealand's Auckland International Airport
Ltd  AIA.NZ  fall around 3.1% for the week
    ** Shares on track for their worst weekly performance since
Dec 30 
    ** Of nine analysts, two rate the stock "buy", three as
"hold" and four "sell"; their median PT is A$8.88 – Refinitiv
data
    ** Stock up 9.9% this year, as of last close
    
    
    ($1 = 1.6399 New Zealand dollars)

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))