Amadeus regains its appeal with a historic valuation
Amadeus was one of the software companies listed on the stock exchange that was considered a loser in the artificial intelligence (AI) race. The market believed that AI tools for professionals would torpedo its business and has led to the value being traded at a low valuation. The drop attracts professional investors and new positions are opened.
Amadeus is regaining its appeal with a historic valuation. The travel technology company has been touted as a loser in the artificial intelligence (AI) race by the market. Investors are attracted to Amadeus as they see opportunities in its market position and downward price movements. French manager BDL Capital is among the latest to open positions, giving the stock significant weight in its portfolios.
Analyst Laurent Chaudeurge from BDL Capital highlights Amadeus' high margins, strong return on capital employed, and structural growth in air traffic, market share, and prices. The company has won all area computing sector bids since 2023 and boasts a healthy balance sheet compared to rival Sabre. BDL Capital notes Amadeus' advantages over competitors, including private and exclusive industry data.
The company's positive balance sheet allows for more investments in research and development compared to Sabre. Despite the market's downward trend, Amadeus' valuation remains low, with the price-to-earnings ratio dropping from 25 times in May to 15 times now, a 50% decrease. BDL Capital has not only invested in Amadeus within the software sector but also opened positions in London Stock Exchange, Scout 24, Eventim, Universal, Rightmove, Relx, SAP, and Experian.
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