Analyst Henrik Paganetty of Jefferies maintained a Hold rating on Avolta AG, retaining the price target of CHF46.00.
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Henrik Paganetty has given his Hold rating due to a combination of factors that highlight both opportunities and uncertainties for Avolta AG. The company’s recent success in securing the Shanghai Pudong International Airport concession represents a notable milestone, reinforcing its strategic plans for expansion into the Asia-Pacific region. However, while this development is promising in terms of geographic diversification, the procedural formalities required to operationalize the concession introduce timing and execution risks.
Additionally, the company has not provided definitive insights into the financial or sales impact of the concession. Although the achievement aligns with Avolta’s midterm sales growth projections of 0–1% from new concession wins, Henrik Paganetty may have opted for a Hold rating due to the limited clarity on the potential revenue boost and overall long-term financial implications. The balance between strategic growth potential and uncertainty regarding operational rollout likely influenced this measured recommendation.
Paganetty covers the Services sector, focusing on stocks such as CTS Eventim AG & Co. KGaA, Avolta AG, and ZEAL Network. According to TipRanks, Paganetty has an average return of 3.1% and a 48.77% success rate on recommended stocks.
In another report released on December 8, UBS also maintained a Hold rating on the stock with a CHF48.00 price target.