The Sydney Airport Holdings Ltd (ASX: SYD) share price is up 25% in 2019 as the hunt for reliable income intensifies on the back of falling cash savings rates in Australia as the Reserve Bank moves to cut rates.
Another factor probably causing retail investors to buy is the fact that financial news wires are reporting that the analysts at Macquarie Group Ltd (ASX: MQG) recently slapped an $8.39 12-month share price target on the business.
Notably the guns at Macquarie are more optimistic than their big end of town rivals at Goldman Sachs.
According to a May 29 research note out of the Vampire Squid, Sydney Airport's shares are only worth $7.35, which means today's buyers could be nursing some capital losses in 12 months' time if Goldman's is on the money.
"We remain Neutral on Sydney Airport given our concerns on future passenger volumes as well as the distribution outlook in the wake of capacity reductions and the Board's decision to smooth distributions over the medium term," commented the analysts.
Sydney Airport's management itself recently reported that over the past 5 years it has returned a compound 17.7% including the reinvestment of dividends.
This week the shares have been edging up towards record highs of $8.34.
