SYD – Credit Suisse rates the stock as Initiate Coverage With Neutral Rating
Credit Suisse is initiating coverage with a Neutral rating and $4.20 target. The airport has a solid business model in the broker’s view, characterised by high barriers to entry and a captive market. The utilisation of larger aircraft and increased penetration of low-cost carriers should facilitate passenger growth in the near term.
The broker considers the yield attractive with near-term growth opportunities likely to outweigh downside risk, but thinks the stock is fully valued.
Target price is $4.20.Current Price is $4.22. Difference: ($0.02) – (brackets indicate current price is over target). If SYD meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).