AlsterResearch AG Update: Fraport AG - September in line with predicted trends

Fraport AG (Update)   Industrial Goods & Services MCap EUR 5.7bn BUY PT EUR 72.00 (+16% potential)   Passenger figures in Sept. stood at 46% of the 2019 level, down from 49% in August. CEO Stefan Schulte warned of a difficult winter. Long term investor still can find value in Fraport.   Read

What’s it all about?

Fraport released September traffic figures this morning. Frankfurt passenger numbers followed the patterns of recent months: very high yoy growth versus a depressed comparable 2020, but still far off 2019 numbers. While August was at roughly 49% of the 2019 level, September dropped slightly to 46%. This follows the pattern predicted by CEO Stefan Schulte, who warned of a difficult winter, as the demand recovery is mostly driven by leisure travelers. These are more seasonal than business travelers. Patient investors will find value looking into the postCovid years. Based on DCF and FCF yield 2025E, we reiterate our BUY rating with unchanged estimates and unchanged PT of EUR 72.00.