10 Best Airport Stocks To Buy

2. Japan Airport Terminal Co. Ltd. (OTC:JAIRF)

Average Price Target Upside Potential According to Analysts: 35.36%

Average Share Price Target Projected by Analysts: $47.73

Japan Airport Terminal Co. Ltd. (OTC:JAIRF) is a Japanese airport operations company that is primarily focused on the construction, management, and operation of passenger terminals at Tokyo-Haneda International Airport. The company’s business includes facility maintenance and management, leasing commercial spaces to airlines and retailers, merchandise sales at domestic and international terminals, passenger services, and commissioned activities such as duty-free shop operation. Japan Airport Terminal Co. Ltd. (OTC:JAIRF) also has a presence at other major Japanese airports like Narita International Airport, Kansai International Airport and Central Japan International Airport, where it provides wholesale services and operates duty-free shops and retail stores. Additionally, the company operates retail stores at Chengdu Shuangliu International Airport in China.

JAIRF is well-positioned to benefit from the recovery in air travel as global tourism continues to rebound. In the fiscal year 2023, ending on March 31, 2024, Japan Airport Terminal Co. Ltd. (OTC:JAIRF) reported that domestic flight passenger numbers rebounded to about 90% of pre-COVID19 levels, driven by an increase in travel demand. Meanwhile, international flight passengers exceeded pre-pandemic figures, reaching an all-time high thanks to strong inbound demand.

The consolidated results for the fiscal year ending March 31, 2024, show that Japan Airport Terminal Co. Ltd. (OTC:JAIRF) experienced growth in all business segments, including facilities management, merchandise sales, and food and beverage. Operating revenue surged by 92% compared to the previous fiscal year, reaching JPY 217.5 billion. The growth was mainly led by strong performances in facilities management and merchandise sales, which grew by 45% and 169% respectively compared to the previous fiscal year.

Japan Airport Terminal Co. Ltd. (OTC:JAIRF) exceeded its sales and income forecasts and the company achieved record highs in both operating income and ordinary income. In response to this positive performance, JAIRF increased its year-end dividend by JPY 12 from the forecast made in October 2023. The company also added a commemorative dividend of JPY 5 per share to celebrate its 70th anniversary, resulting in a dividend of JPY 42 per share. This will result in an annual dividend of JPY 67 per share and a payout ratio of 32%.

Analysts have a positive outlook on JAIRF, with price targets indicating potential upside, reflecting confidence in the company’s ability to maintain profitability. The median 1-year stock price target set by analysts is $47.73, which indicates a potential upside of 35.36% from current levels.