Fraport: Credit Suisse downgrades share
(CercleFinance.com) - Credit Suisse has downgraded its rating on the Fraport share from neutral to underperform.
The broker has also cut its corresponding target price to 26 euros (from 39 euros), saying the "market (is) not fully factoring in challenges faced by Fraport".
"Our 2022E EBITDA falls to E887m from E1,125m, vs. consensus of E1,102m," Crédit Suisse says.
Crédit Suisse now expects more competition for traffic at Frankfurt airport, leading to a 1% reduction in tariffs in 2022e and 2023e.
"We show that lower capacity utilization in 2021 vs 2019 may incentivize Munich, Zurich, and others to compete for Frankfurt's transfer traffic".
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