Flughafen Wien confirmed at HOLD, TP EUR 28 - Long haul recovery
With respect to the disruptive effects of Covid-19 implications on the aviation industry, the reported risks to the future of Austrian Airlines (although we base our model on a restructuring with about 20% lower seat capacity following successful state aid) and the closure of the Vienna base of the number 2 airline Laudamotion we have revised our planning assumptions and valuation for the shares of Flughafen Wien. We reiterate our HOLD recommendation setting a target price of EUR 28 (down from EUR 40.0). The share trades at a premium to other listed European airports (EV/EBITDA 22e of 12.1 vs. peer group of around 10x) A successful restructuring of Austrian Airlines looks rather priced in, in our view. News-flow on state aid and the restructuring plans is expected in the coming days. The Vienna destination might in general be somewhat negatively impacted by consequences on travel patterns overproportionately hitting Vienna like e.g. congresses and city tourism.Flughafen Wien is the operator of Vienna Airport. Through its subsidiaries, Co. is engaged in managing airport operations and also provides a range of infrastructure services, which include the development and maintenance of infrastructure, ground handling and security services to a variety of retail, gastronomy and parking services as well as real estate marketing. Co. is responsible for the operation and maintenance of all movement areas and the terminals, the facilities involved in passenger and baggage handling as well as security controls for persons and hand luggage. Co. also provides services for aircraft and passenger handling in scheduled, charter and general aviation traffic.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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