Dufry Rises Most in Two Weeks on Travel Growth: Basel Mover
Dufry AG (DUFN), the operator of Hudson News stores in airports, rose the most in two weeks in Zurich trading after ING analysts said rising airline passenger traffic and increased retail space will boost revenue.
Dufry rose as much as 8.1 Swiss francs, or 7.5 percent, to 116.4 francs. That’s the biggest intraday gain since Jan. 17. The stock was up 3.5 percent at 10:13 a.m. and has gained 29 percent this year, making it the fourth-best performing stock in the 218-member Swiss Performance Index.
So-called organic sales may rise 11 percent annually between 2011 and 2015, while net income may increase 20 percent during the same period, ING Groep NV analysts John David Roeg and Jan Meijer wrote in a research note published yesterday. Acquisitions may add to the gains, the analysts said. They initiated coverage of Dufry with a “buy” recommendation.
“Dufry’s growth strategy is focused on emerging markets and tourist destinations,” the analysts wrote. “These locations offer higher sales and profit growth due to a combination of higher airline-passenger traffic growth and lower concession fees.”
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