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Original-Research: Flughafen Wien AG - from NuWays AG

Classification of NuWays AG to Flughafen Wien AG

Company Name: Flughafen Wien AG
ISIN: AT00000VIE62

Reason for the research: Update
Recommendation: Halten
from: 18.06.2024
Target price: EUR 58.00
Target price on sight of: 12 Monaten
Last rating change: 
Analyst: Henry Wendisch

Solid May'24 traffic results kick off strong summer; chg. est.
 
Topic: FWAG released strong May 2024 traffic results, which came in
slightly above our expectations and signal solid ongoing demand for air
travel.
 
Solid passenger growth: In May, group passenger numbers rose by 8% yoy to
3.75m, above our estimate of 3.66m. FWAG's main hub (Vienna airport)
experienced a strong increase in passenger traffic of 5.3%, reaching 2.84m
passengers (eNuW: 2.81m) and marking a 76% group share. Malta airport's
traffic result pose a highlight with superb growth 18% yoy to 0.86m
passengers (eNuW: 0.73m) and a 23% group share. The growth is predominantly
driven by the island's pull as a tourist destination. On a YTD basis, group
passengers are up 10.5% yoy, in line with other European airports (see p.2
for details). On a sidenote, cargo showed a strong recovery of 20% yoy to
26.3m tons mainly driven by the reduced sea freight from East Asia coming
through the Suez canal which is compensated by air freight.
 
Strong summer ahead: May kicked off the busy summer season whose subsequent
operating leverage should deliver sound profitability for the second and
third quarter. We regard the expected exceedance of last year's summer as
highly positive, given that last year's summer showed remarkable passenger
dynamics and marks a tough comparable base. While last year's growth was
driven by Covid recovery effects, this year's growth should mainly stem
from an increase in disposable income in Vienna airport's superb catchment
where inflation  is well below nominal  wage increases. Thus, we expect a
strong ongoing summer travel season.
 
Slowing momentum ahead: Due to the tough comparable base, monthly yoy
passenger growth rates should decline for the remainder of the year to an
average of 3.4%. However, based on the YTD passenger growth of 10.5% yoy so
far, we expect the FY'24e passenger numbers to grow by overall 6% yoy to
40.2m (guidance: c. 39m) (see p. 2).
 
Albeit current valuation shows a 19% upside to our DCF price target of EUR
58.00, the peer group analysis (see p. 2) indicates  adequately priced
shares. While trading on a discount to peers on EV multiples (skewed at
FWAG due to the unique net cash position), the equity based PE ratio
indicates a premium to peers.
 
Thus, we reiterate our HOLD recommendation despite ongoing strong
operations.

You can download the research here:
http://www.more-ir.de/d/30053.pdf
For additional information visit our website
www.nuways-ag.com/research.

Contact for questions
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.

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-------------------transmitted by EQS Group AG.-------------------


The issuer is solely responsible for the content of this research.
The result of this research does not constitute investment advice
or an invitation to conclude certain stock exchange transactions.

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