Aéroports de Paris Shares Rise Post Upgrade

Investing.com — Shares of Aéroports de Paris (EPA:ADP) saw a rise on Tuesday following an upgrade from analysts at BofA Securities, moving from “neutral” to “buy.”

At 6:30 am (11:30 GMT), Aéroports de Paris traded 2.6% higher at €107.6.

The upgrade came with an increased price target, now set at €155 from €128, indicating a potential upside of about 50%.

BofA analysts cited ADP's strong structural positioning, despite a challenging year and underperformance compared to European peers like AENA and Flughafen Zurich.

This underperformance stemmed from political and fiscal pressures in France, including tax hikes. Nevertheless, ADP is regarded as a leader in significant markets—France, India, and Türkiye—and several growth catalysts are highlighted: anticipated tariff hikes for 2025, expected traffic acceleration, and higher retail spending targets.

Traffic growth projections remain robust, especially for long-haul routes, with a forecasted 3% growth in Paris for 2025, driven by strong demand from North America and a potential recovery in Asia.

ADP's retail segment is outperforming expectations, with analysts forecasting a revenue per passenger increase of 3-4% for 2025.

Additionally, BofA recognizes ADP’s strategic international investments in India and Türkiye as undervalued assets.

The valuation of ADP's stakes in GMR and TAV has increased, highlighting long-term value in emerging markets.

Combined with potential regulatory approvals for tariff increases, these factors suggest a favorable trajectory for ADP’s financial performance.

The note also mentioned improved earnings forecasts, with 2025 EPS expected to rise nearly 17.9% to €6.85, reflecting operational efficiencies and strategic positioning.

BofA analysts believe these elements bolster the case for ADP's stock recovery and enhance its investment appeal.