5. Flughafen Zürich AG (OTC:UZAPF)
Average Price Target Upside Potential According to Analysts: 20.39%
Average Share Price Target Projected by Analysts: $275.87
Flughafen Zürich AG (OTC:UZAPF) is the owner and operator of Zurich Airport, Switzerland’s largest airport, and is involved in managing several airports abroad. The company operates in various regions, including Latin America, where it is involved in the operation of eight airports. Flughafen Zürich AG (OTC:UZAPF) is currently constructing a new greenfield airport in Noida, India, to serve the Delhi metropolitan area. This international expansion will allow the company to leverage its expertise gained in Zurich to create new long-term revenue streams. The company’s core activities include operating transport hubs, managing commercial centers, and developing real estate.
The company’s strategic investments and international projects are expected to drive future growth and profitability, making it an attractive option for investors. In the first half of 2024, Flughafen Zürich AG (OTC:UZAPF) invested CHF 275.4 million in property, plant, equipment, and various projects, a significant increase from CHF 162.9 million in the previous year. This includes the development of landside passenger zones at Zurich Airport, which will expand retail and dining options and improve passenger flow by autumn 2027. In June, the company also completed the main phase of its new baggage sorting system at Zurich Airport, which will be replacing the old system fully by 2027.
Additionally, construction on the company’s largest international project in the Delhi area is entering its final phase, with Noida International Airport set to open as the city’s second airport by the end of April 2025. In the first half of 2024, additional licenses were awarded for ground handling, managing commercial areas, and key maintenance contracts.
Flughafen Zürich AG (OTC:UZAPF) also completed the operational take-over of Natal International Airport in Brazil in February 2024. The airport currently has a capacity of 6.5 million passengers annually and operates under a 30-year concession agreement.
With traffic numbers slightly exceeding expectations, Flughafen Zürich AG (OTC:UZAPF) reported strong financial results in the first half of 2024. Total revenue reached CHF 631.1 million, a 9% increase compared to the same period in 2023 and 107% of the 2019 figure. Aviation revenue grew by 13% to CHF 313.5 million, while non-aviation revenue increased by 7% to CHF 317.6 million. Revenue from foreign business increased by 20% to reach CHF 49 million in the first half of 2024.
The company’s EBITDA rose by 7% to CHF 346.8 million, up 14% compared to the first half of 2019. This led to a positive consolidated result of CHF 151.8 million, surpassing the previous best half-year result from 2019 by 6%.
Strong traffic numbers during the first half of the year positively impacted commercial revenue on both the airside and the publicly accessible landside. Total commercial and parking revenue rose by 5% compared to the first half of 2023, reaching CHF 133.8 million. Additionally, real estate revenue grew by 1% to a new all-time high of CHF 98.2 million, highlighting the strength of the real estate sector as a reliable business area for the company.
UZAPF is one of the best airport stocks to buy according to analysts. Analysts have a consensus buy rating on the stock and the 1-year median price target of $275.87 set by analysts indicates a potential upside of 20.39% from current levels.
