Aena SA Downgraded to Sell Amid Concerns Over Unsustainable Earnings and Declining Free Cash Flow

Goldman Sachs analyst Patrick Creuset downgraded the rating on Aena SA (0R4Y – Research Report) to a Sell yesterday, setting a price target of €189.00.

Patrick Creuset has given his Sell rating due to a combination of factors impacting Aena SA’s financial outlook. Despite the company’s strong balance sheet and significant exposure to European consumers, Creuset is concerned about the medium-term prospects for free cash flow and growth. The current over-earning in Aena’s regulated business is seen as unsustainable, with expectations of a significant decline in free cash flow by approximately 40% from 2025 to 2028.
Additionally, the anticipated increase in capital expenditures coupled with stable aeronautical fees contributes to a less favorable financial outlook. There is also a potential risk of reduced regulated returns if traffic decreases in a weaker economic scenario. Given these factors, Creuset has downgraded the stock to a Sell, with a revised 12-month price target of €189, reflecting a sector-relative downside.

According to TipRanks, Creuset is ranked #4058 out of 9290 analysts.