Aeroports de Paris Reports Strong Traffic Growth for First-Quarter 2014; Raising Fair Value Estimate

Aeroports de Paris reported a 2.4% year-over-year decline in sales to EUR 637 million for the first three months of 2014, even as Paris traffic increased 3.6% to 20.1 million passengers. Overall, the results were in line with our full-year projections but year-to-date traffic is coming in much stronger than our initial 2% growth estimate. We are nudging up our traffic estimate to 3% for 2014. Combining the increased sales outlook and time value of money in our valuation methodology leads us to raise our fair value estimate to EUR 72 from EUR 70 for the no-moat rated airport operator.