Europe’s troubled rollout of the new biometric border system is already testing airport and airline technology, with reports of long queues, missed flights, and even talk of suspending the system at Rome. For investors, this is a reminder that critical infrastructure can quickly turn from background plumbing into a front-page risk. This article looks at three stocks from an Airport and Airline Technology Infrastructure Providers screener that appear closely exposed to the current EES headlines. You will see how these companies sit in the crosshairs of operational disruption and where the market may currently be mispricing that exposure.

BlackBerry (TSX:BB)

Overview: BlackBerry is a Canada based software company that builds cybersecurity, secure communications, and real time operating systems used in cars, critical infrastructure, and government and enterprise networks worldwide.

Market Cap: CA$7.19b

For investors focused on airport and airline technology infrastructure, BlackBerry sits in an interesting spot: its QNX real time software already underpins safety critical systems in vehicles and other equipment, while its secure communications and endpoint tools are designed for exactly the kind of mission critical environments now being tested by the EU’s biometric border rollout. Earnings quality is currently described as high and profitability has improved, but the stock trades on a very rich P/E multiple with a valuation viewed as expensive relative to industry peers, so any stumble on growth or cash flow could matter. In addition, there is a relatively new management team and higher reliance on external borrowing. As a result, this is a high quality asset with execution and valuation risk that investors should understand in detail.

BlackBerry’s rich P/E and high quality earnings profile suggest that the market may be missing key context on what is actually priced in. Get the full picture with the DCF valuation analysis for BlackBerry, which highlights one factor that could change how you view the stock entirely.

GB Group (LSE:GBG)

Overview: GB Group is a UK based software company that provides identity verification, biometric checks, document authentication, and fraud prevention tools that help banks, airlines, border agencies, and online businesses verify people and businesses and meet KYC and compliance rules.

Operations: GB Group generates most of its £285m revenue from Identity solutions at about £175m, with Location services contributing roughly £89m and Global Fraud Solutions around £22m, supported by diversified demand across the UK, US, Australia, and other regions.

Market Cap: £437.5m

GB Group gives exposure to the growing need for secure digital identity and fraud prevention, which is closely linked to current concerns around airport queues and biometric border controls. The company is currently loss making and reported a net loss of £75.1m on £285m of sales. It trades on a P/S multiple below peers and below some estimates of its fair value, which points to potential mispricing if its transformation pays off. A new multi year data partnership with Equifax, a recently refinanced £175m credit facility, and an expanded buyback plan indicate management’s confidence, but heavy investment, reliance on third party data, and debt funded operations mean execution and cash generation are key considerations from here.

GB Group’s stalled profits and lower P/S multiple hint at a story the market may not be pricing in yet, especially with that Equifax deal and buyback in play, so walk through the full analysis report for GB Group

CyberArk Software (CYBR)

Overview: CyberArk Software is an identity security specialist that helps large organizations and government agencies control which humans and machines can access critical systems, data, and applications, using tools like privileged access management, multi factor authentication, and secrets management.

Operations: CyberArk generates all of its US$1.36b in revenue from security software and services.

Market Cap: US$20.64b

CyberArk Software sits at the point where airport and airline IT, biometric borders, and AI security concerns intersect. This is why the recent EU EES problems may be relevant for this stock. Airports, airlines, and governments under pressure to harden access controls and protect sensitive travel and identity data may look closely at vendors that can secure privileged accounts, machine identities, and cloud workloads in one platform. However, CyberArk is still loss making, trades on a rich P/S multiple, and faces integration work from recent acquisitions and heavy competition, so expectations are high. For investors assessing whether current growth forecasts and the identity platform story justify that optimism, the details in CyberArk’s narrative and forecasts are important to review.

CyberArk’s rich P/S and loss-making profile sit alongside a fast-expanding identity story that many investors may only see at the surface, so walk through the analyst forecasts for CyberArk Software to see what expectations could be hiding.

The three stocks in this article are only a starting point, as the full Airport and Airline Technology Infrastructure Providers screener surfaces 21 more companies with equally compelling narratives that may be worth a closer look for your watchlist. To identify and analyze the specific catalysts, security exposures, and business models that fit your own thesis around airport and airline technology infrastructure, head to the Airport and Airline Technology Infrastructure Providers screener to focus on the highest conviction ideas for your portfolio.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.