Fraport stock: Back to its former strength?

Last Updated: 9. Januar 2024By

Fraport shares have started the new 2024 stock market year comparatively well. After a slight correction in the first trading week, the airport operator’s stock is now back at around the level of the end of 2023 (as of January 9, 2024, around 10 a.m.).

With a price increase of more than 20 percent in the past year, Fraport shares are among the winners of the MDAX in 2023. Whether it will continue to rise this year and perhaps move the stock back towards pre-pandemic levels remains to be seen. The figures for the past financial year are expected to be released on March 19.

Fraport with a good financial year After 9 months of last year, Fraport published convincing figures. Q3 was even the most successful quarter in the company’s history. For the full year, the airport group continues to expect an EBITDA between 1.04 and 1.2 billion euros and a profit of 300 to 420 million euros.

Fraport is also making progress in the recovery of passenger numbers: Compared to the previous record year 2019 (before the pandemic), the traffic in 2023 is expected to be 10 to 15 percent below. In 2024, the gap is expected to be reduced even further. However, due to the high debt burden, there will be no dividend in 2024 either – a payout can be expected at the earliest next year.

What will happen to Fraport shares in 2024? After the good performance in 2023 and the rally towards the end of the year, no miracles can be expected from Fraport shares in the short term. A forecast for the current financial year 2024 could give the stock new impetus. Depending on how net debt, passenger traffic and profits develop this year, a movement of Fraport shares towards pre-crisis levels is also conceivable.

However, it is still a long way to go until the prices from 2019, some of which were above 75 euros, and 2024 could also be a transitional year in this regard. Investors should not write off Fraport shares in the medium and long term, but a lot of patience may be required.