The Sydney Airport (ASX:SYD) share price is up 43% for the year. Here’s why

What’s behind the share price rise?
The post The Sydney Airport (ASX:SYD) share price is up 43% for the year. Here’s why appeared first on The Motley Fool Australia. –

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is arguably having one of its best years.

Shares in the infrastructure giant have soared more than 43% in the last 12 months.

Despite widespread lockdowns and border closures, Sydney Airport shares have soared in 2021.

Let’s take a look at what’s been fuelling the Sydney Airport share price.

Takeover offer boosts Sydney Airport share price

There have been several catalysts helping the Sydney Airport share price in the past 12 months.

In the latter parts of last year, with most of Australia managing to control the COVID-19 pandemic, travel restrictions were lifted.

In addition, a Trans-Tasman travel bubble between Australia and New Zealand also assisted sentiment for the sector.

Despite Sydney going into a lockdown mid-way through this year, a single catalyst has helped fuel the Sydney Airport share price.

Shares in the company received a boost early last month following a $22.6 billion buyout offer.

The offer saw the Sydney Airport share price storm more than 34% on the day.

A consortium of infrastructure investors – IFM Investors, Global Infrastructure Management, and QSuper – launched the takeover offer, valuing Sydney Airport at $8.25 per share.

Prior to the offer, the Sydney Airport share price was languishing for the year.

Outlook for Sydney Airport share price

Following the takeover offer, Sydney Airport’s management noted the predatory nature of the takeover bid.

The company cited that the offer of $8.25 per share was below where Sydney Airport shares were trading pre-pandemic.

Before the COVID-19 pandemic, the Sydney Airport share price was trading at around $8.95.

In addition, rumours began to swirl that another consortium led by Macquarie Group Ltd (ASX: MQG) was considering a counter bid.

As a result, Sydney Airport formally rejected the takeover offer for 100% of its shares in mid-July.

Despite rejecting the offer, the Sydney Airport share price has managed to hold onto its gains following the takeover bid.

More on Sydney Airport

Sydney Airport is Australia’s largest international gateway. The company generates revenue through aeronautical, retail, property, car rental and parking operations.

With widespread COVID-19 lockdowns hampering the Australian travel sector yet again, Sydney Airport could receive extra attention this reporting season.

Sydney Airport will release its 2021 half-year results on Friday 20 August.

The post The Sydney Airport (ASX:SYD) share price is up 43% for the year. Here’s why appeared first on The Motley Fool Australia.

Should you invest $1,000 in Sydney Airport right now?

Before you consider Sydney Airport, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Sydney Airport wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

This ASX tech share fell 87%, but we love it now

When was the best day on the Sydney Airport (ASX:SYD) share price chart?
Why is the Flight Centre (ASX:FLT) share price slipping 2% today?
The Sydney Airport (ASX:SYD) share price is up 20% so far in 2021. Here’s why
ASX 200 Weekly Wrap: Blockbuster Afterpay deal turbocharges ASX to new record highs

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!