It looks one of the best shares on the S&P/ ASX200 I(ASX: XJO) for dividend income, but according to the expert analysts at Goldman Sachs, today might not be the time to buy Sydney Airport Holdings Ltd (ASX: SYD) shares.
In a research note dated May 28, Goldmans offers up several reasons for its decision to downgrade the airport’s shares from a ‘buy’ rating to a ‘neutral’ rating.
These include that for the year to date up to April 2019 domestic passenger numbers are down 1.8%, with the federal election also apparently causing a potential slowdown in travel plans. Overall, Goldmans also flags its view that the macro outlook for calendar year 2019 is also turning down compared to 2018.
As a result of updating its earnings per share forecasts, Goldmans now has a 12-month share price target on Sydney Airport of $7.35 per share, which is almost flat on today’s exchange traded price of $7.33.
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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.