Getlink January Traffic Falls on Poor Weather Conditions

January Traffic Declines for Channel Tunnel Operator

Getlink SE (EPA:GET) reported a significant year-over-year decline in traffic for January, with truck shuttles falling by 5.3%, a sharper decrease compared to the 2.3% drop in December. Passenger shuttle volumes also saw a downturn, declining by 3.9%, worsening from the previous month's 2.6% fall.

Weather Conditions Cited as Primary Cause

The company attributed the soft start to the year to adverse weather conditions experienced at the beginning of January. These conditions directly impacted the overall traffic flow through the Channel Tunnel, affecting both freight and passenger services.

Market Outlook and Stock Performance

Despite the January dip, market consensus projects a recovery, with full-year forecasts anticipating 0.9% growth in truck volumes and 2.0% in passenger volumes. Analysts currently maintain a Hold rating on Getlink stock. The price target is set at €16.50, which represents a potential 5% downside from the recent trading price of €17.28.

Summary and Key Events to Watch

While the year began on a weak note due to external factors, analysts expect traffic to rebound in the coming months. Investors are now looking ahead to the company's full-year results and Capital Markets Day for updates on capital allocation strategy and asset demand.

FAQ

Q: Why did Getlink's traffic decrease in January?
A: The company stated that adverse weather conditions at the start of the month were the main reason for the decline in both truck and passenger traffic.

Q: What is the analyst consensus for Getlink stock?
A: Analysts currently have a Hold rating on the stock with a price target of €16.50.

Source: Investing.com