Aeroports De Paris Raising Guidance for Fiscal 2022; Shares Overvalued

Narrow-moat Aeroports de Paris is performing ahead of expectations. First-half 2022 revenue doubled and EBITDA increased by 350% year over year, driven by a 134% increase in passenger traffic. Traffic levels in the second quarter reached 80% of 2019 levels. Management increased guidance on the back of the strong recovery. Traffic is now expected to reach 74% to 84% of 2019 levels for the full year, compared with 70% to 80% in previous guidance. EBITDA margins for the full year are expected to range between 32% and 37% versus 30% to 35% and are in line with precoronavirus levels. We maintain our EUR 115 fair value estimate with shares currently trading in overvalued territory.