Daily ShareChat: Auckland International Airport

By Jenny Ruth

Tuesday 9th November 2010 1 Comment

Auckland International Airport's passenger volumes are tracking ahead of his 2011 estimates but growth could slow over the next quarter, says Rob Bode, an analyst at First NZ Capital.

“Domestic growth should flatten in the near term following the withdrawal of Pacific Blue and trans-Tasman growth is also showing signs of easing following a strong period of growth,” Bode says.

“We think any slowing would prove fairly short-lived as demand should start to pick up in 2011 with stimulation provided by new services and capacity additions.”

Bode is forecasting the airport will earn about the top of its guidance of between $112 million and $118 million in the year ending June 2011.

“We expect AIA to grow EPS (earnings per share) by over 35% over the next three years, achieving growth above its target of 10% per annum,” he says.

“Earnings growth is expected to resume in financial 2011 as retail income recovers post reconfiguration and expansion of departures retail, scheduled increases in aero charges come through and as international traffic growth recovers.”

Bode values the airport's shares at $2.12 although his 12-month target is $2.25. “While the growth outlook remains encouraging on a two-to-three year view, we think this is now fully factored into AIA shares.”

Rating: Neutral (from outperform).

Comments from our readers

On 12 March 2011 at 3:00 pm des hunt said:

based on the results to-date there is no justification for an increase in director fees. Des Hunt, Director NZSA