J.P.Morgan downgrades Aena, initiates Zurich Airport at 'overweight'

** J.P.Morgan downgrades Aena AENA to "underweight" as it sees a "prolonged period of elevated capex"

** Also initiates Zurich Airport FHZN at "overweight", noting its attractive valuation and additional earnings growth expected from Noida Airport

** JPM estimates Aena's free cash flow will no longer be sufficient to finance its dividend policy in the next years, after its announced $15.2 billion investments

** "With traffic showing signs of slowing, with the need to raise debt to finance dividends and risks of operational disruption from major construction works", its dividend policy is in question, the brokerage says

** Meanwhile, it highlights "strong" near-term traffic momentum for Zurich Airport and a longer-term traffic outlook that compares favourably to peers