Sep Q traffic stats showed a decline in international of 0.2%, the first decline since the June Q 2009. Domestic rose 1.0%. Airline discipline with regard capacity is largely to blame, the broker suggests, but while international weakness was thus no surprise, the magnitude was more than the broker had forecast.
The broker has now dismissed any hope of a dividend surprise at the 2014 result and retains Neutral on Sydney Airport, with an unchanged $4.48 target.
Target price is $4.48.Current Price is $4.22. Difference: $0.26 – (brackets indicate current price is over target). If SYD meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).