Morgan Stanley| Aena presented its 2Q23 results on Wednesday with good news for investors including (1) strength in the commercial sector (+19% in Duty Free spend per passenger), (2) lower dilution in the aviation sector and greater OpEx control, (3) the proposed 2024 tariff increase to 4.1% year-on-year and (4) EBITDA of €802m, 5% above consensus and 9% above MS expectations.
These aspects should drive the company to achieve +2-3% EBITDA improvement by 2023 and probably continue the momentum in 2024. Nic Mora reiterates his Overweight as he sees Aena as a quality airport operator, well positioned to benefit from the advantages offered by Retail rises and also offering a very attractive entry point, at a valuation of <8x 2025e EV/EBITDA.
