Report
Dan Wasiolek
EUR 147.86 For Business Accounts Only

Amadeus Continues to Outpace the Industry Roughly In Line With Expectations; Shares Overvalued

Amadeus distribution revenue (70% of total sales) gained share in the third quarter and is tracking in line with our 2016 forecast. Meanwhile, the company’s IT division (30% of total sales) continues to see healthy adoption, tracking slightly ahead of our estimate for the year. We may increase our EUR 37 fair value estimate by EUR 1 to account for the time value of money and marginally higher IT revenue and currency benefit in 2016, leaving shares overvalued. We plan to maintain Amadeus’s narrow...
Underlying
Amadeus IT Group SA Class A

Amadeus is a transaction processor for the global travel and tourism industry. Co. provides transaction processing power and technology solutions to both travel providers (including full service carriers and low-cost airlines, hotels, rail operators, cruise and ferry operators, car rental companies and tour operators) and travel agencies (both online and offline). Co. acts both as a worldwide network connecting travel providers and travel agencies through a processing platform for the distribution of travel products and services (through the Distribution business), and as a provider of a portfolio of IT solutions which automate certain business processes (through the IT solutions business).

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Dan Wasiolek

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