MAP has largely been trading in a wide sideways range since 2005, between a peak of $3.48 in April 2006 to a low of $2.86 in August 2006. The stock subsequently rallied off the $2.86 low back to $3.34 in October. A recent pullback to current levels around $3.17 looks to be a good buying opportunity for MAP to continue its recent uptrend back towards its highs near $3.50.
MAP are set to receive a distribution of ~A$500m thanks to a refinancing of Sydney Airport.
This cashflow, combined with a A$444m from a previous issue of TICKETS securities will enable MAP repay bridging debt required for the acquisition of additional stakes in Copenhagen, Brussels and Sydney Airports.
In our view the re-financing of these airports (particularly Brussels) is on the cards and the repayment of the bridging finance clears the way for any gains in respect to this to be used for acquisitions, a buyback or a special distributions to MAP shareholders.
We also believe there is strong growth potential within the MAP portfolio, with strong growth in traffic in Sydney in particular where growth in international traffic is the strongest in 2 years.
We also see potential for further growth in traffic thanks to an easing oil price.
With the stock likely to receive support from a combination of these factors and a strong yield I’m happy to get on board here!
MAP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
