ARGT - Corporación América Airports: Accelerating Traffic Growth To Power Next Leg Higher

2025-02-20 17:50:55 ET

Summary

• Corporación America Airports remains undervalued despite a significant rally, and increasingly strong traffic reports are set to power further gains in 2025.
• The company's profitability metrics have become significantly better over the past few years, which is not yet reflected in its valuation.
• The stock trades at about 10x earnings and 7x EV/EBITDA, which is too cheap given its double-digit growth potential.
• Argentina's economic reforms under President Milei further bolster CAAP's investment appeal.

Corporación América Airports S.A. ( CAAP ) is one of the world's leading private airport concession holders. It operates 52 airports spanning South America, Europe, and Eurasia.

The company got its start in 1998 when it won the AA2000 concession in Argentina, which gave it the right to manage most of Argentina's leading airports. It controls these airports, including both major Buenos Aires ones, through 2038. It has also since added airport operations in Brazil, Italy, Armenia, Ecuador, and Uruguay. It's also seeking potential expansion opportunities in additional markets, such as Nigeria and Angola....

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