ADP: Berenberg upgrades stock

(CercleFinance.com) - Berenberg has upgraded its rating on the Aéroports de Paris (ADP) share from "hold" to "buy," having increased its corresponding target price from 85 euros to 110 euros, in a report on European airport operators.


"European airports have rallied by c25% with the approval of the Pfizer vaccine but have drifted back since, as considerable uncertainty remains about the sector's recovery profile," the broker notes, for which " H1 2021 looks set to be extremely difficult".

Nevertheless, Berenberg still prefers airports over airlines, given their lower cash burn and liquidity risk, as well as the relative underperformance of airports since the start of the pandemic.


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