Amadeus IT Group stock upgraded from hold to buy due to its industry leadership and 12% upside toward FY 2025 earnings, with a price target of $87.99. The company reported double-digit growth in all segments, with total sales up 12.9% to €6.141 billion and EBIT growing 18.2% to €1.635 billion. Free cash flow improved by 15.9% to €1.33 billion, despite higher capital expenditures, indicating strong financial health and investment in future growth.
Amadeus IT Group reported strong Q3 earnings with 12.6% revenue growth and double-digit growth across all segments, driven by higher volumes and pricing adjustments. Despite the strong earnings, the stock is rated a hold due to its underperformance compared to the S&P 500 and its somewhat rich valuation against peers. The stock has an 8% upside based on median EV/EBITDA multiple, with potential 22% upside next year driven by EBITDA and free cash flow growth.
Amadeus IT Group (AMADY) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).