Macquarie Airports (MAP) Share Trading Recommendation

Submitted by Craig Strzelecki on 30 January, 2007 - 22:39

Macquarie Airports (MAP) have a Neutral 2 Share trading recommendation and a share price target of $3.52 from shares analyst UBS. The shares analyst considers MAP as an attractive long term exposure with good yield and growth, strong management and catalysts but considers the shares as it stands as fully valued. The analyst considers the following as catalysts to the Macquarie Airports share price: 1) sustained Sydney traffic turn around; 2) Federal Government announcement on regulatory review expected ~Mar 07 (expect to be largely in-line with draft, which is +ve for Sydney); 3) Brussels refi (FY07) could release ~A$350m (~20cps); and 4) Potential divestment of Rome & Birmingham Airport stakes. Sydney Airport delivered a very strong 2Q result ahead of expectations, assisted by a turnaround in international pax growth and good cost containment. Opex was down overall, -6% on a per pax basis which was particularly pleasing. Sydney is now reaping the recovery for the $100m checked baggage screening investment. UBS have reviewed our FY07E earnings for Sydney and increased EBITDA by 3.5%, we also adjusted some of our capex forecasts resulting in an overall valuation increase of ~7%. The Productivity Commission final report has been submitted and we expect the Federal Government to support a further 5 years of price monitoring. Key for Sydney is the sustainability of the traffic turnaround.

Macquarie Airports Limited is listed on the Australian Stock Exchange (ASX) under stock code MAP. You can view their investor website here. MAP was listed on the ASX on 2 April, 2002. Kerrie Mather is the CEO and Max Moore-Wilton the Chairman for Macquarie Airports. MAp is listed on the Australian Stock Exchange, and their objective is to invest in a portfolio of ports. In its IPO prospectus, MAp stated its intention to acquire significant shareholdings which provide influence over the key strategic, commercial and financial decisions affecting its investments. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade MAP. Check your charts and good luck with your share trading!