This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Broker UBS (20 Jul) said UK airlines not suffering from consumer slowdown. Broker Jefferies (21 Jun) said BBA’s prospects are “solid”, supported by robust trading in core business aviation market. Recent Epic acquisition also improves medium-term forecasts along with US FAA sees business-jet movements +2 YoY in 4-months to April. The shares rallied after 4-month results (11 May).
Risks to BBA shares include higher oil prices making fuel and travel more expensive, reducing demand for airport and after-market services; Brexit uncertainty, unforeseen events (terror, weather); an economic slowdown; poor H1 results next week.
Consensus, albeit small, with only 5 institutions covering the company, is bullish, with brokers evenly split 50% saying Buy, 50% Hold and none Sell. This is supported by 80% of analysts suggesting upside from current levels and the consensus target of 369p being bang in-line with our short-term objective or revisiting January highs.
Next Event: Interim Results, 1 Aug
Latest Broker 12-Month Consensus: 50% Buy, 50% Hold, 0% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 3.7 | 3.8 | 10.3 | -3.2 | 15.0 | 46.1 | 64.5 | 51.2 | 63.5 |
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Prepared by Michael van Dulken, Head of Research