NuWays AG Updates Rating for Flughafen Wien AG: Hold

NuWays AG has provided an update on Flughafen Wien AG, maintaining a "Hold" recommendation with a target price of EUR 58.00, effective from 18 June 2024. This assessment follows an analysis of the company's robust May 2024 traffic results, which outperformed expectations and signalled sustained demand for air travel.

In May, group passenger numbers increased by 8% year-on-year to 3.75 million, surpassing the projected 3.66 million. Vienna Airport, the primary hub, saw a 5.3% rise to 2.84 million passengers. Notably, Malta Airport recorded an 18% year-on-year growth, reaching 0.86 million passengers—a 23% share of the group’s total.

The strong start to the summer season is projected to enhance profitability in the upcoming quarters. Despite anticipating a slowdown in growth rates due to tough comparables, the report predicts total passenger numbers for 2024 will climb by 6% year-on-year to 40.2 million.

Despite a 19% upside to the DCF price target, the peer group analysis suggests that Flughafen Wien AG's shares are adequately priced. Consequently, NuWays has reiterated its "Hold" recommendation.