DO & CO AG Maintains Growth Amid Challenges

NuWays AG has updated its recommendation for DO & CO AG to "BUY" with a target price of €250 for the next 12 months. Despite the prolonged closure of the Strait of Hormuz affecting fuel supplies, the company is expected to maintain its growth trajectory. DO & CO's strategic focus on premium segments and long-haul routes is seen as a buffer against potential volume declines.

Turkish Airlines and Istanbul Airport are anticipated to benefit from rerouted travel due to disruptions in Middle Eastern airspace, offering an advantage to DO & CO. Passenger growth figures underscore this trend, with notable increases reported for both Turkish Airlines and Istanbul Airport.

DO & CO's catering model, with fixed-margin contracts and cost structures, is positioned to protect its margins, even amidst potential volume fluctuations. Its competitive position is strong, with an 8.7% EBIT margin and minimal debt, highlighting its resilience compared to peers.