FPRUF - Fraport: Upgrading To Buy For The Long Term
2024-01-30 13:12:35 ET
Summary
- Fraport stock might not seem an attractive investment due to high capex phase, but it has performed satisfactorily compared to broader markets.
- Fraport's 9M results show revenue and EBITDA above 2019 levels, with gradual recovery expected in Frankfurt.
- Fraport's main growth drivers are Fraport Greece and Antalya, while some airports in the portfolio are seeing lower recovery levels.
In May 2023, I covered Fraport (FPRUF) and my conclusion was that Fraport stock was not an extremely attractive investment path to ride the air travel recovery. The main reason for that is that Fraport currently is going through a high capex phase driven by expansions in Frankfurt where Terminal 3 will be inaugurated in 2026 and construction of the new terminal at Lima Airport to be in inaugurated in 2025 while the new control and second runway have been completed. I rated Fraport stock a hold and that seems to have been a good call since the stock gained 17% compared to a 19% appreciation for the broader markets. An investor in Fraport would not have outperformed, but the performance also would not be weak by any measure....
Fraport: Upgrading To Buy For The Long Term