ENAV (AO) | Hold | No surprises in Q1; FY guidance still pending and CEO resigns (expected)

Research evidence excerpt

ENAV (AO) | Hold | No surprises in Q1; FY guidance still pending and CEO resigns (expected)

ENAV Hold | Target Price: EUR4.70

Company description Management

ENAV is the monopoly in charge of providing air traffic control services Pasqualino Monti, CEO

throughout the entire Italian airspace. Among the company's regulated activities Luca Colman, CFO

(c. 95% of its revenues) we distinguish en route services, through which it

handles air traffic crossing the country's airspace from four Area Control Centres, Key shareholders

and terminal services, to provide assistance during the approach, take-off and Free float 46.65%

Republic of Italy (Ministry of Economy and Finance 53.30%

landing phases from 45 control towers located in different Italian airports.

Investment case Valuation methodology

ENAV is the monopoly in charge of controlling the airspace of We value ENAV through a five-year dividend discount model.

the fifth most visited country in the world, Italy. The company The assets are fully owned by the company and there is no

also benefits from travel routes that fly to/from neighbouring expiry date on the contract, therefore we add a residual value to

countries and other continents through its airspace (over 40% of our assumptions.

en route traffic represented by overflight). We use a cost of equity of 8.5%, implying a beta of 0.7.

Over 95% of the revenues are regulated and its regulatory Risks to our rating

frameworks provide material stability and visibility during each Relevant changes in the bond yield environment (+/-).

five-year period. Potential inorganic growth in non-regulated activities.

ENAV offers high visibility on the dividend side, which imply Dividend payments beyond RP4.

mid-single-digit yields during the rest of the decade.

Catalysts