10 Best Airport Stocks To Buy

4. Fraport AG (OTC:FPRUF)

Average Price Target Upside Potential According to Analysts: 25.70%

Average Share Price Target Projected by Analysts: $65.33

Fraport AG (OTC:FPRUF) is a leading global airport operator headquartered in Frankfurt, Germany. The company owns and manages Frankfurt Airport, one of the busiest aviation hubs in Europe. Through its portfolio of companies, Fraport AG (OTC:FPRUF) also holds interests in the management and operation of several other airports around the world. The company offers a diverse range of airport services, including flight and terminal operations, ground handling, airport management, parking, security, retail, real estate, and consulting services.

The German group has a presence in several markets, including Brazil, Peru, Bulgaria, Slovenia, Turkey, Greece, China, India, and the United States. However, on September 9, Fraport AG (OTC:FPRUF) signed an agreement to sell its entire 10% stake in Delhi International Airport to its majority owner, GMR Airports Infrastructure Limited, for USD 126 million. This transaction is expected to be completed in the first quarter of 2025, indicating that Fraport may soon exit the Indian market.

The company stands out as a promising investment option due to its notable growth in earnings and impressive financial performance. In the first half of 2024, total revenue rose by 13% year-over-year to reach EUR 2.04 billion, driven by growing demand for air travel. Fraport AG’s (OTC:FPRUF) international business was a key driver of revenue growth, particularly its operations in the United States, Peru, and Greece. The takeover of center management at Washington D.C.’s Dulles and Ronald Reagan airports boosted Fraport USA’s revenue, while Lima and Fraport Greece benefited from strong passenger traffic. The positive performance of these international subsidiaries helped the group deliver strong financial performance in the first half of 2024.

Passenger numbers increased by 7.2% to a total of 74.1 million travelers across Fraport AG’s (OTC:FPRUF) airports in the first half of 2024. The company’s EBITDA reached EUR 567.1 million, reflecting a 17.8% increase, while net profit surged nearly 90% to EUR 160.8 million, showcasing the effectiveness of the company’s operational strategies and investments. As a result, basic earnings per share rose to EUR 1.63 in the first half of 2024, compared to EUR 0.87 in the first half of 2023.

Analysts are also bullish on FPRUF and have a consensus buy rating on the stock and the 12-month median price target of $65.33 set by analysts indicates a potential upside of 25.70% from current levels.