...- We view Milan's airport operator SEA S.p.A.'s earnings profile as strong, supported by its solid market position as the largest airport system in Northern Italy (35.3 million passengers in 2023) and high operational diversity and flexibility that will maintain its good traffic growth over the next two to three years. - This is anchored by a protective dual-till regulatory framework and a long-term concession expiring in 2043, which we believe will support stability and predictability in cashflows. - We anticipate that leverage will increase, with funds from operations (FFO) to debt declining to around 44%-45% from 99% in 2023 over the next three years, mainly on higher capital spending for maintenance and new commercial space (about 540 million in 2024-2028). - Given the company's strong cashflows and low debt levels, we believe that there is headroom for leverage to increase further, depending on its dividend payout. - The city of Milan owns 54.8% of SEA, but we consider that the company...
