Sydney Airport Holdings Ltd's (ASX: SYD) latest set of full-year results has been well received by analysts, many of whom have upped their 12-month price target on the stock in the week since.
For the full-year ended 31 December 2014, Sydney Airport Holdings reported a 6% rise in pre-tax earnings, driven by a strong decrease in operating expenses and a 4.3% lift in annual revenue to $1.164 billion. Passenger growth also improved over the year, while the company continued to up its shareholder distributions, announcing a 23.5 cent full-year dividend.
Although the market's response was initially negative, resulting in a 3.5% fall for the stock on the day the results were released, the shares are once again trading near an all-time high at $5.23. What's more, Credit Suisse upgraded its recommendation on the stock to Outperform from Neutral while Morgan Stanley, UBS and Deutsche Bank all raised their target prices on the stock.
UBS raised the bar by 29% and is expecting the stock to hit $5.40, while Morgan Stanley and Deutsche Bank have targets of $5.00 and $5.20, respectively.
Should you buy?
Sydney Airport Holdings is one of Australia's most widely-held stocks, and for good reason. After all, the company owns some of the nation's most critical infrastructure and has excellent future growth prospects, particularly with tourism from Asia set to jump.
While the best course of action may be to wait for the stock to cool in price a little, it does carry an excellent 4.5% dividend yield.
