Analyst Nicolas Mora of Morgan Stanley maintained a Hold rating on Aeroports de Paris ADP, retaining the price target of €131.00.
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Nicolas Mora has given his Hold rating due to a combination of factors impacting Aeroports de Paris ADP. The company recently issued a profit warning for the first half and full year of 2025, primarily due to foreign exchange challenges. The depreciation of the Turkish Lira and the Indian Rupee has negatively affected the euro value of ADP’s stakes in TAV and GMR, leading to significant non-cash financial losses. Additionally, the French corporate tax surcharge is expected to impose a substantial charge on the company’s earnings for the first half of 2025.
Despite these challenges, the management’s decision to adjust the dividend distribution policy to exclude non-cash items provides some protection for the company’s dividend per share. This adjustment aims to mitigate the impact of the foreign exchange losses on shareholder returns. Furthermore, while the core business operations in Paris remain stable and in line with expectations, the complex accounting and foreign exchange impacts contribute to the cautious Hold rating. Overall, these factors suggest a balanced outlook, warranting a Hold recommendation.
Mora covers the Industrials sector, focusing on stocks such as Eiffage, Ferrovial, and Vinci SA. According to TipRanks, Mora has an average return of 8.6% and a 75.37% success rate on recommended stocks.
In another report released on June 24, Kepler Capital also maintained a Hold rating on the stock with a €104.00 price target.