Dufry: Multiple Positives, Reiterate Buy

Bhagyesh Shah, CFA
369 Followers

Summary

  • Dufry's H1 performance shows strong sales growth and improved margins, benefiting from COVID-19 recovery and pent-up demand.
  • Dufry won the Aena concession and expanded its floor space by 30% which removes an overhang.
  • We believe Chinese travel growth would recover significantly in the near term as a result of significant savings and increasing zeal to travel after being locked down for three years.
  • We continue to reiterate buy given favorable risk/ reward and cheap valuation.

Duty free shop at airport

David_Bokuchava/iStock Editorial via Getty Images

Investment Thesis

In continuing with our coverage for Dufry (OTCPK:DUFRY), we had assigned a buy rating to the stock for a play on long term passenger growth driven by robust travel demand, particularly

This article was written by

369 Followers
Investment analyst with about a decade of experience within Financial Services including a Wall Street Bank. Focused on long term value creation in select stocks that are undercovered and could have a significant growth potential.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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