Fraport AG

Barclays downgraded Fraport to "underweight" from "equal weight" on Tuesday, citing weaker winter traffic, and cut its price target to €57 from €68. The bank also downgraded Athens International Airport to "underweight" from "equal weight" while raising its price target to €10.95 from €10.70, saying the stock's recent strength, which it suspects was driven by index buying, has left it overvalued. Athens shares have risen about 20% since Sept. 1, while the Stoxx 600 has fallen about 2.5%, leaving about 10% downside to the raised target, which reflects a cut in Barclays' cost of equity to 7.6% from 7.9% after Greece was upgraded from emerging to developed market status. Athens is also bidding for a 40-year concession covering 22 regional Greek airports serving a combined 2.4 million passengers, though Barclays said the outcome is uncertain and does not materially change its near-term earnings outlook. Barclays expects airlines to reduce capacity plans this winter unless fuel prices fall back sharply, noting that airBaltic, Volotea and AnimaWings have filed for bankruptcy protection in recent weeks and expecting other small airlines to follow. For Fraport, Barclays forecast third-quarter underlying EBITDA of €553 million, 8% below Bloomberg consensus, and cut its 2026 and 2027 Frankfurt passenger forecasts to 63.0 million and 65.3 million from 63.2 million and 66.5 million, respectively, while lowering its underlying EBITDA forecasts by 2% and 4% to €1.40 billion and €1.54 billion and cutting its adjusted earnings-per-share estimates by 11% and 29%. Barclays kept "overweight" ratings on ADP and Aena and "equal weight" on Zurich Airport, left its ADP price target at €150, implying about 40% upside, kept its €28.50 target on Aena while forecasting third-quarter revenue of €2.02 billion and EBITDA of €1.35 billion, and cut its Zurich Airport price target to 200 Swiss francs from 215 francs.

Fraport Group reported a 32.2 percent decline in second-quarter net profit to 84.7 million euros, while EBITDA edged up 0.7 percent to 386.3 million euros. Revenue grew 5.8 percent to 1.187 billion euros, and the company confirmed its fiscal 2026 outlook. CEO Stefan Schulte said passenger volumes in Frankfurt are stagnating due to strikes and geopolitical tensions in the Middle East, but traffic is growing at most of the group's international airports. The drop in net profit reflects accounting effects from the commissioning of new terminals in Lima and Frankfurt. For the full year, Fraport continues to expect a decline in net profit and an increase in group EBITDA to up to approximately 1.5 billion euros, while Frankfurt passenger volumes are now seen at roughly the previous year's level of about 63.2 million.