Flughafen Wien AG: Analysts Maintain HOLD Recommendation Amid Strong Traffic Results

NuWays AG has updated its analysis on Flughafen Wien AG (FWAG), issuing a HOLD recommendation with a revised target price of €58.00. This comes in light of FWAG's remarkable traffic performance in February 2024, seeing an 18% year-over-year increase in group passengers to 2.38 million, surpassing the estimated 2.21 million. Notably, Vienna's airport contributed significantly with a 17% increase in passengers, alongside Malta's exceptional 25% growth. The analysis attributes this growth not only to the leap day effect but also to the persisting strong demand for air travel.

The easing inflation rate in Austria and the rise in nominal wages are anticipated to sustain the demand for leisure travel, particularly during the upcoming summer. Business travel is also expected to gain momentum, supported by the recovery from COVID-19 and Vienna's prominence in hosting international conventions. Consequently, airlines are increasing supply in response to the climbing demand, positively affecting FWAG's operations.

According to NuWays AG, FWAG is set to benefit from a statutory 9.7% increase in airport charges, starting January 2024. This, combined with the anticipated continuous growth in passenger numbers, is expected to significantly boost the company's revenues and EBITDA in the first quarter of 2024. Analysts forecast a 17% year-over-year increase in sales to €210 million and an EBITDA margin improvement to 41%, highlighting an optimistic outlook for FWAG's near-term financial performance.