The month of August is expected to reflect the impact of the Hong Kong protests on demand for flights out of Sydney. Some 7% of international passengers are bound for Hong Kong on average, and the broker now assumes a reduction in its forecasts.
At the same time, Chinese airlines have reduced their capacity. In terms of valuation the impact is minor, and presumed to be temporary.
Of more importance, the broker notes, is the upcoming and complex renegotiation of the airport’s access regime. Neutral and $8.53 target retained.
Target price is $8.53.Current Price is $8.42. Difference: $0.11 – (brackets indicate current price is over target). If SYD meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).