Barclays Taps Fraport and ADP as Top Airport Stocks for 2026

Barclays Highlights Top European Airport Investments

Barclays has identified Fraport (FRA) and Aéroports de Paris (ADP) as its top investment picks among European airport operators for 2026. The firm anticipates a favorable environment driven by improving cash flows, rising traffic, and a supportive regulatory landscape.

Market Outlook and Key Drivers

The positive outlook for the European transportation infrastructure space underpins these selections. Barclays points to specific catalysts for each company that are expected to unlock significant value for shareholders heading into 2026.

Fraport: Clear Upside Potential

Fraport is noted for its strong and increasingly visible cash flow inflection. Growth is supported by Condor's hub expansion, new aircraft from Lufthansa, a retail boost from the upcoming Terminal 3, and renegotiated handling contracts. Its international assets also continue to perform well.

Aéroports de Paris (ADP): Regulatory Value

ADP's investment case is centered on its upcoming Economic Regulation Agreement (ERA). Barclays believes a long-term ERA would secure future infrastructure investments and provide long-term value, despite potential near-term negotiation challenges.

Summary and Outlook

Both Fraport and ADP present distinct opportunities based on strong operational fundamentals and strategic developments. Investors will watch Fraport's capital expenditure plans and the outcome of ADP's ERA negotiations as key indicators for future shareholder returns.

FAQ

Q: Which two European airport stocks does Barclays recommend for 2026?
A: Barclays' top picks are Fraport (FRA) and Aéroports de Paris (ADP).

Q: What is the primary driver for Aéroports de Paris's potential growth?
A: The key opportunity for ADP is the finalization of a new long-term Economic Regulation Agreement (ERA), which is expected to provide regulatory stability.

Source: Investing.com