AMADEUS : an attractive entry point according to Barclays
March 13, 2024 at 06:59 am EDT
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Barclays has reaffirmed its 'Overweight' recommendation and 80 euro price target on Amadeus, believing that the low share price offers an attractive entry point into the Spanish air travel booking platform.
'Amadeus shares have been weaker since the release of its results due to concerns over the impact of direct connections and the expansion of M&A outside the core business', notes the broker.
However, Barclays considers these concerns to be exaggerated, and sees only around 2% more bookings at risk from direct connections. We consider Amadeus to remain one of the most attractive opportunities in the sector', it concludes.
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Amadeus IT Group, S.A. owns and operates the world's No. 1 travel distribution and reservation computer system. The group's system allows travel agencies and airline sales offices to make reservations to hotels, car rental agencies, and service providers (including ocean transportation companies, tour operators, cruise lines, etc.).
The group is also involved in supplying computer services and marketing services for online reservation software and data flow management software.
Net sales are distributed geographically as follows: Spain (2.6%), Germany (6.4%), the United Kingdom (4.7%), France (4.2%), Europe-Middle East-Africa (30.7%), the United States ( 22.4%), America (9%) and Asia-Pacific (20%).
AMADEUS IT GROUP, S.A. 
