Flughafen Zürich (1K) | Hold | A more cautious stance, but not hard landing

Research evidence excerpt

Flughafen Zürich (1K) | Hold | A more cautious stance, but not hard landing

Flughafen Zürich Hold | Target Price: CHF230.00

Company description Management

Flughafen Zürich owns the assets of Zurich Airport and is in charge of operating the Lukas Brosi, CEO

infrastructure until 2051. It also operates other airports in Chile and Brazil, and it will Kevin Fleck, CFO

soon finalise the construction of Noida Airport, which will be one of the biggest in Asia.

Key shareholders

Free float 62.00%

Canton of Zurich 33.00%

City of Zurich 5.00%

Investment case Valuation methodology

We expect Zurich Airport to outperform during the next We value Flughafen Zurich on the basis of a 2027-51 group

regulatory period. For the subsequent period, the roll-over DDM.

mechanism will trigger a compensatory adjustment which, in Our cost of equity considers a weighted average market risk

our model, implies an additional tariff cut. premium to fully account for its current operational assets and

Through its international portfolio, it is exposed to densely Noida (India).

populated countries, such as Brazil and India. However, these Zurich Airport's concession ends in 2051. However, the

airports currently represent a small percentage of the company's full ownership over the assets leads us to calculate

company's EBITDA and visibility on Noida's development a residual value.

remains limited. Risks to our rating

Zurich's commercial activities were expected to remain Flat or higher aeronautical charges in the 2032-36 regulatory

subdued due to ongoing landside works. Nonetheless, these period.

operations have proved to be more resilient than initially Noida Airport's traffic (+/.).

anticipated.

Capex evolution, especially for Noida's phases 3 and 4.

Catalysts