BUZZ-Jefferies ups PT for NZ's Auckland Airport, sees growth to take flight

Reuters11-21
BUZZ-Jefferies ups PT for NZ's Auckland Airport, sees growth to take flight

** Jefferies upgrades price target for Auckland International Airport AIA.NZ to NZ$8.5 from NZ$7.9, retains "hold" tag

** Brokerage says AIA has many attractive characteristics and is expected to remain the premium gateway airport to the New Zealand market

** Also sees potential for multiple expansion as monetary policy eases and passenger growth returns

** Interest rate cycles tend to be a significant driver of infrastructure valuations, as asset multiples are expected to outperform in an easing cycle

** Jefferies flags the delivery of aeronautical infrastructure remains a "significant task" for management, but is supported by a stable regulatory environment

** However, brokerage sees the development of associated commercial businesses as a growth opportunity for co

** Stock down 10.3% so far this year, as of last close

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com))

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