Friday, December 3

Amadeus soars 13.5% in its best streak in more than three years

The price of Amadeus it chained a ten-session bullish streak that left the technology solutions provider up 13.5 percent.

The company is moving at 62 euros and although it is trading at fairly demanding valuations for fundamentals, the technical analysts consulted by explained that it is close to significant resistance, the overcoming of which could extend the advances to 70 euros.

The company started the final stretch of the year badly, after confirming its exit from Eurostoxx50, as announced by But from the lows it marked in September at 49 euros, the group has bounced 26 percent, in the heat of the better tourism prospects.

The Spanish listed companies in the tourism sector gave the stature with their results, which unleashed a wave of purchases. Analysts have revised their expectations before the clear signs of recovery.

Credit Suisse bets on Amadeus… half

Esther Monday were the economists of Swiss credit who raised the company’s target price to 53.35 euros.

The recovery of air traffic and the gains in market share led these experts to raise their valuation. The problem is that they do not see value beyond 53.5 euros, which is why they continue to recommend ‘underweight’ the stock.

In this way, the Swiss bank raised their EBITDA forecast this year to 608 million euros, which represents an increase of 11 percent.

Recovery of margins

For next year, they calculated an ebitda of 1,500 million, which is still far from the 1,700 million expected by the consensus of analysts.

The bet on Amadeus was not complete, to the extent that Credit Suisse thinks that Amadeus needs to improve its margins for its target price to move above 60 euros.

In this sense, experts believe that the hotel business should show greater visibility to boost margins.

Analysts start to move higher at Amadeus

However, not all investment houses were as cautious as the Swiss bank. Following the publication of results, other leading firms significantly increased their valuation of Amadeus.

For instance, JP Morgan set a price target of € 72 per share, which still leaves a 15 percent bullish margin. They were still placed higher in Oddo BHF, whose target price of 74 euros leaves a margin of return of 17 percent. It is the same valuation of Alantra.

Almost a 9 percent of potential leaves the 63.5 euros that they calculate in Renta 4 Banco. In the opinion of Ivan San Felix, the analyst of the firm, the cost cuts exceeded the forecasts, with which the group already obtained in September the objective for the whole year.

Another of the group’s green shoots is cash flow, which was in positive territory and reached 86.3 million euros.

A bullish streak that can go further

With this news, Amadeus signed its best streak on the stock market since May 2018 and can still continue to accelerate the rally.

After the support made by the stock in the middle of September in its upward guideline, it began an upward stretch that for the moment has brought it to the vicinity of its respective average of 200 sessions, around 61.8 euros.

Now, Amadeus “has a resistance at 66.4-66.7 euros, levels of November 2020 and June of this year,” he said. Jose Luis Herrera, Analyst at Global Investment Bank.

If Amadeus exceeds this area, “it would have a gap to close at 70.5 euros, and a resistance beyond 78.5 euros per share,” said this expert. The support is at 54.5 euros, an area that for now seems distant after the brilliant rebound in value.

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