UBS Upbeat on Avolta's Long-term Growth Amid Chinese Airport Duty-free Market Entry

07:52 AM EDT, 09/14/2026 (MT Newswires) -- UBS Global Research noted the strategic importance of China on Avolta's (AVOL.SW) long-term growth, citing expectations that the country's inbound tourism revenue will reach $470 billion in 2040. "We did some channel checks, spoke to industry experts, assessed UBS travel conference feedback and evaluated market data. We conclude, Avolta's organic sales momentum is likely to remain healthy, ranging 3-4% y/y in Q3 26E (Q2 26 +2.9%), despite the global impacts of Middle Eastern conflict. NA and Europe should both grow positively for Avolta. However, profitability could remain challenged near term," analysts said Monday. "UBS analysed the Chinese travel market's importance and expects it to increase in relevance long term. Despite impacting profitability near term, we think Avolta's entry into the Chinese airport duty-free market is strategically the right step." The research firm sees China as well placed to secure a larger share of global travel spending, supported by an expected increase in inbound travelers through 2040 amid travel policy tailwinds. Inbound tourism revenue in the Asian country is projected to see a compound annual growth rate of 8.9% over the 2025 to 2040 period. In December 2025, Avolta was awarded a concession at Shanghai Pudong International Airport, marking the Swiss travel retailer's maiden airport location in the Asia Pacific region. UBS has a neutral rating on the stock, with a price target of 52 francs.