Athens International Airport (AIA GA) Greece
Industrials
ResearchGreece initiates coverage with a Do Not Own (DOI) rating due to a) the low-capped-earnings growth outlook; b) the uncompelling 3.6% dividend yield left over from 2023 (paid in 2024); c) DCF/DDM valuation; and d) the warranted discount to peers given the shorter remaining concession life. Some investors may consider the average dividend yield of c.8% between 2024-2046, assuming a 100% payout ratio, to be a good enough reason to own the stock, but weak earnings growth (2023-2030 clean EBITDA CAGR at +0.7% and EPS CAGR at -0.4%), means the dividend yield edges closer to 6.6%-7.4% in 2025-2030. Therefore, they fail to see any upside or capital appreciation above this yield at the current share price.
Edition: 180
- 23 February, 2024