6. Aeroports de Paris SA (OTC:AEOXF)
Average Price Target Upside Potential According to Analysts: 19.83%
Average Share Price Target Projected by Analysts: $155.19
Aeroports de Paris SA (OTC:AEOXF), commonly known as Groupe ADP, is a leading airport operator that manages the full spectrum of airport activities, from engineering and design to operations and infrastructure development. The company owns and operates the three main airports in Paris – Charles de Gaulle, Orly, and Le Bourget – as well as several other aerodromes in the region. Groupe ADP operates a network of 26 airports worldwide through concessions and management contracts. However, through its subsidiaries, activities, and businesses combined, the company is active in over 100 airports across 50 countries.
In addition to its core aviation business, Aeroports de Paris SA (OTC:AEOXF) offers a range of commercial services, including shops, restaurants, hotels, parking, and real estate development, to provide a comprehensive experience for passengers while also generating non-aeronautical revenue.
The company’s diversified revenue model and commitment to sustainable growth make it an attractive investment option for investors seeking exposure to the recovering aviation industry.
Aeroports de Paris SA (OTC:AEOXF) reported strong operating and financial performance in the first half of 2024, with total revenue reaching EUR 2.88 billion, a 13.4% increase compared to the same period last year. Total Groupe ADP passenger traffic increased by 9.7% year-over-year to reach 170.2 million. Groupe ADP benefited from the rise in traffic and robust retail activity, which saw sales per passenger increase to EUR 31.7, up 7.1% compared to the same period last year. The company reported an EBITDA of EUR 943 million, reflecting a 9.3% increase, while net income attributable to the Group surged by 64.5% to EUR 347 million. The company’s operating income from ordinary activities surged by 51.7% to EUR 681 million in the first half of 2024.
On top of this, Groupe ADP made extensive preparations for the Paris 2024 Olympic and Paralympic Games, positioning itself to benefit significantly from the event. The preparations included the opening of a new Metro Line 14 station at Paris-Orly Airport on June 24th, reducing travel time to the city center to just 20 minutes. To accommodate increased passenger traffic at Paris-Charles de Gaulle Airport, the company reopened Terminal 2C and Terminal 2A, achieving full operational capacity at CDG for the first time since 2018. In order to provide the best experience for all travelers, faster security scanners were introduced at the airports in Paris.
During the Olympic Games, Aeroports de Paris SA (OTC:AEOXF) successfully managed a significant volume of luggage and passenger traffic, which is expected to positively impact its upcoming earnings and financial performance report.
Analysts are also bullish on AEOXF. 6 analysts have a buy rating on the stock. The median 12-month stock price target set by analysts for AEOXF is $155.19, which indicates a potential upside of 19.83% from current levels.
