Vienna Airport AG Maintains Its Performance: Overview and Perspectives

NuWays AG has released an update on Vienna Airport AG, maintaining its recommendation to "HOLD" with an unchanged price target of €52.00. The company started the year with significant passenger growth, achieving a 12% increase in January compared to the previous year, with a total of 2.33 million passengers. Growth was particularly strong on long-haul routes to North America and the Far East, as well as for major destinations in Western Europe.

However, a deceleration in momentum is expected, with passenger growth forecasted to decrease to low single digits in the coming months, averaging 3.4% for the fiscal year 2024. Despite this, thanks to a 9.7% increase in airport charges, Vienna Airport is expected to continue its robust revenue growth of 9.6%. Profit margins, however, appear to be reaching a plateau, suggesting that future growth will mainly come from increased revenue.

The official start of the investment cycle with the beginning of the construction of the extension of the southern terminal is also noteworthy. This project, with a total cost estimated at €420 million, is expected to generate additional revenue once fully operational.

The successful IPO of Athen International Airport SA serves as a benchmark for evaluating Vienna Airport, suggesting a fair valuation relative to peers, although VWAG is trading at a slight premium.