TAV Airports (TAVHL TI) - Solid operations: Maintain Buy
TAV Airports released net income of EUR24m in 1Q19, slightly lower than our estimate of EUR29m and RT consensus of EUR26m. The divergence from our estimates came from EUR4m of deferred tax expense. Operationally, 1Q19 EBITDA of EUR98m came in line with our estimate of EUR97m and RT consensus estimate of EUR96m.
We expect investor interest to wane in the short term. However, we maintain our BUY call on TAV Airports as we expect cash generation to remain healthy, backed by robust Turkish aviation market and TRY weakness. We believe that any positive outcome related to the compensation for the early closure of IAA would only serve as a catalyst for the stock in the near term.
TAV Havalimanlari Holding is involved in the businesses related to the construction of terminal buildings, management and operation of terminals or airports. As of Dec 31 2015, Co.'s reportable segments include: terminal operations, which is involved in operating terminal buildings, the car park and the general aviation terminal; catering operations, which manages food and beverage operations of the terminal; duty free operations, which is involved in the sales of duty free goods; ground handling and bus operations, which provides traffic, ramp, flight operation, cargo and all other ground handling services for domestic and international flights; and other, which provides lounge services.
TEB Investment equity research analysts and strategist team consists of 8 analysts with an average finance sector experience of 15 years and special focus on international investors.
With our 6 equity research analysts we cover 93 companies across 21 sectors, reflecting 80% of the total market capitalization of all BIST companies and 86% of the BIST100 companies. Our strategy team provides in depth top-down and bottom-up market views with insight on FX and bond markets by publishing sectoral and strategic reports both in English and Turkish.
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