The Sydney Airport (ASX:SYD) share price rebounds from early morning losses

Sydney Airport’s share price was down almost 1% in early morning trading before shedding the losses to trade flat by lunchtime.
The post The Sydney Airport (ASX:SYD) share price rebounds from early morning losses appeared first on Motley Fool Australia. –

airport, sydney airport, check-in, flight, holiday, tourist

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is flat in early afternoon trading, after being down almost 1% in earlier trading. This comes after Sydney Airport’s shareholders enjoyed a 3.1% gain over the course of last week.

After shares plunged more than 48% earlier in the year, driven by the wider COVID-19 market panic, Sydney Airport’s share price has choppily moved higher, regaining 30% from the March lows.

But with investors still focused on the near-term travel restrictions that have gutted international and domestic air travel, the share price remains down 32% from 17 January.

What does Sydney Airport do?

Sydney Airport Holdings owns a 100% interest in Sydney Airport, offering an international gateway connecting to more than 90 other airports around the world.

Headquartered in Sydney, the company provides aeronautical, retail, property, car rental, and parking and ground transport services through its 2 main business units: Aviation (Sydney Airport) and Leasing & Advertising Opportunities.

Sydney Airport shares began trading on the ASX in 2002. Today it’s part of the S&P/ASX 200 Index (ASX: XJO).

What next for the Sydney Airport share price?

In intraday trading, Sydney Airport’s share price is flat. That’s despite receiving the thumbs up from Morgan Stanley this morning.

Citing the potential benefits of capital expenditure tax write-offs and its belief that more air travel routes will open over the coming 12 months, the broker upgraded Sydney Airport shares from equal-weight to over-weight. Its new price target of $6.67 per share represents an 11% upside from the current price of $6.02 per share.

I believe Morgan Stanley’s analysts have this one right, though if anything they may be being a bit conservative.

While the European and American continents look likely to remain no fly zones for the next 12 months as their respective nations struggle to contain the coronavirus, the likelihood of expanded air travel bubbles is looking up.

Domestic air travel will be the first to recover, assuming Australia’s virus cases continue to head towards zero. The New Zealand travel bubble will most likely follow, with negotiations between the two governments on the finer details continuing.

And over the weekend Prime Minister Scott Morrison added the Pacific island nations, Japan, South Korea and Singapore to the list of nations Australians may be able to fly to (and whose citizens may be able to fly here) within the coming months.

Speaking in Queensland, Morrison said he’d “had a number of discussions with Pacific leaders this week.” He also noted there had been discussion with Japan’s and South Korea’s leaders and that, “The Foreign Minister, this week, has been talking to the Prime Minister of Singapore.”

These may be baby steps towards the full reutilisation of Sydney Airport’s facilities. But it’s a good indication that patient investors could again see the Sydney Airport share price trading at January’s $8.81, a gain of 46% from the current price.

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post The Sydney Airport (ASX:SYD) share price rebounds from early morning losses appeared first on Motley Fool Australia.

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!