Asian airport operators' stocks set for a take-off, says Morgan Stanley

Asian airport operators’ earnings, and their share prices, may be ready to take off.
 

Rising wealth, improving connectivity and social media penetration will spur spending on international air travel, Morgan Stanley analysts including Daniel Lau wrote in a research report on Jan. 16.Operating profit growth for airports under the firm’s coverage will pick up to a 9.5 percent compounded annual growth rate between 2017 and 2022, from 6.1 percent in the last five years. 

Morgan Stanley’s key stock picks include Japan Airport Terminal Co., Airports of Thailand Pcl, Shanghai International Airport Co. and Sydney Airport.

While earnings growth will support valuations, risks