Groupe ADP shares have returned to important technical levels around 153 EUR based on weekly price data. The timing seems attractive to be a buyer of this stock.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 153 EUR in weekly data.
● The group's high margin levels account for strong profits.
● Historically, the company has been releasing figures that are above expectations.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
Weaknesses
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
● With an enterprise value anticipated at 4.46 times the sales for the current fiscal year, the company turns out to be overvalued.
● The firm trades with high earnings multiples: 25.44 times its 2019 earnings per share.
● Below the resistance at 172.4 EUR, the stock shows a negative configuration when looking looking at the weekly chart.
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Aéroports de Paris develops and manages airports, including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget. In 2023, the Group handled c. 99.7 million passengers at Paris-CDG and Paris-Orly, and c. 326.7 million passengers abroad. Boasting an exceptional geographic location and a major catchment area, Aéroports de Paris is pursuing its strategy of adapting and modernizing its terminal facilities, upgrading quality of services and developing retail and real estate businesses. Sales break down by activity as follows:
- supply of airport services (32.9%): air traffic management, intermodal transportation and terminal management, telecommunication spaces, and installation of airport infrastructures, etc.;
- operating sales areas and services (30.5%): shops, restaurants, banks, exchange offices, etc.;
- real estate management (5.4%): land and commercial real estate property leasing (businesses, offices, hotels, logistics buildings, passenger registration and transfer, baggage handling, aircraft management (cleaning, guidance, storage and starting assistance, aircraft loading and unloading), etc.;
- other (31.2%): including international airport management, airport engineering services, specialized telecommunications services, etc.