Dufry Sales Rebound as Travel Restrictions Are Lifted in Americas and Europe; Shares Attractive

We are retaining our fair value estimate of CHF 66 per share and narrow moat rating for Dufry as the company reported solid demand recovery in the first quarter and further improving trends in the month of April. In the first quarter revenue was 36.2% below prepandemic levels on an organic basis (144.5% growth against 2021). In April trends further improved following relaxation of travel restrictions, being only 21.6% down on 2019 levels, despite the Russia-Ukraine conflict. We remain comfortable with our forecast for revenue in 2022 to be down 20% on 2019 levels, which is substantially above consensus that calls for 32% lower revenue. We believe shares are undervalued, trading at 45% discount to our fair value estimate in 4-star territory.