Bank of America is very convinced of Aena’s solid stock market future, thanks above all to the optimistic forecasts for a recovery in air traffic in Spain.
That optimism leads the firm’s analysts to reiterate their buy recommendation on the stock.
“We reiterate our buy recommendation on Aena, since we believe that its share price does not reflect the potential for air traffic recovery during the years 2022-23 and greater visibility on regulation. That, despite the residual risks related to the pandemic, “says a report sent by the US investment bank.
In October 2021, traffic at Spanish airports has already recovered 69.9 percent of the levels of 2019, the best brand of any European operator.
Air traffic will be at 90 percent between January and February
But Bank of America’s forecasts are even more optimistic. “Air capacity data suggest that traffic in Spain will be at 90 percent of pre-pandemic levels in the first quarter of 2022, between January and February,” the document says.
Although, that does not mean that the bank’s analysts are not aware that traffic flows can change from one moment to another, especially when mobility restrictions are increasing due to the rise in Covid-19 infections.
“Even so, recent data confirm that Aena quickly recovers traffic once the restrictions are lifted. For this reason, we continue to rely on our traffic forecasts for the company (recovery of 82 percent from the levels of 2019 in 2022, reaching 98 percent in 2023) ”, says the text.
The short distance benefits Aena
One factor that makes them think like this is the fact that 90 percent of Aena’s volumes are related to short-distance lines, which in principle are recovered earlier.
Beyond that, Bank of America also believes that Aena will benefit from “greater visibility” on regulation that affects the firm, so that the “potential negative impact” of a rate adjustment “should be quite limited.”
For all this, Bank of America has raised its target price on the company to 162 euros, compared to 160 it had previously. This two-euro adjustment is also due to the reduction in debt.
The optimism about Aena, on the other hand, is not as widespread among analysts who follow the value. 40 percent of them recommend buying, but 37.5 percent advise keeping and 21.9 percent selling.
They place the target price at 156.67 euros compared to the current listed price, at 137.60 euros, which gives it a potential revaluation of 13.9 percent.