10 Worst Airport Stocks to Buy

1. TAV Havalimanlari Holding A.S. (OTC:TAVHY)

Number of Hedge Fund Holders: N/A

Average Analyst Price Target Upside: -64.5%

TAV Havalimanlari Holding A.S. (OTC:TAVHY) is a Turkish company that is a significant player in airport operations. It currently manages 15 airports across eight countries, including Croatia, Georgia, Saudi Arabia, and Kazakhstan.

According to the company, it has over 300 partner airlines, a footprint in 33 countries, and employs close to 40,000 people. In 2023, it served 96 million passengers. The company was covered by 9 analysts with an average price target of $10.2 as of September 26. The average price target implies a downside of 64.5%. It tops our list of worst airport stocks to buy.

Despite that, TAV Havalimanlari (OTC:TAVHY) is a fundamentally strong company and has a comprehensive plan to improve its services and overall quality with “2025 Pioneers.” It is the company owner, Groupe ADP’s initiative integrated into the company’s strategy. According to it, the company is focused on sustainability, innovation, and growth, and is aiming to achieve carbon neutrality by 2030 and net-zero emissions by 2050.

Some of the major goals include improving flight punctuality, integrating biometric systems for 50% of passengers, and enhancing hospitality with a target Airport Service Quality (ASQ) score of 4+ for major airports.

In the first half of 2024, TAV Havalimanlari (OTC:TAVHY) served 46 million passengers, marking a 17% increase, with international traffic up 20%. Revenue grew 31% to €732 million, EBITDA rose 47% to €215 million, and net income reached €81 million.

While we acknowledge the potential of TAV Havalimanlari Holding A.S. (OTC:TAVHY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TAVHY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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