After taking a hit in recent weeks on signs of slowing passenger growth at Sydney Airport, Macquarie Airports was the recipient of a heartening research report from Macquarie Equities.
Just six weeks after the broker cutting its recommendation on the stock, Macquarie Equities upgraded MAp back up to "outperform". Given the airport owner's share price has dipped 11 per cent since late May and Sydney Airport's recent annual profit "being in line with expectations", the broker reckons the the airport owner is looking like a good buy.
MAp shares rose 3c to $3.28 yesterday but are still down from their May 31 $3.70 high.
Macquarie Equities reckons the market should also pay attention to the revenue boosting initiatives MAp is making at its European airports, such as Rome and Brussels.
"The outlook is attractive for MAp. Brussels and Rome should both deliver a strong result with EBITDA growth of 28 per cent and 12 per cent respectively for the half, both well above passenger growth with the driver being cost reductions and retail/car parking refinements," the broker said.
It added the divestment of Rome Airport's 30 per cent interest in the Airports Company South Africa and AdR handling business. Macquarie Equities said the sale of these business could raise up to €316 million ($503 million) - and result in a special dividend of 4c a share."
MAP Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
