CAAP - Corporación América Airports: Excellent Growth On Incremental Capital Justifies 21x Earnings

2024-01-31 21:33:24 ET

Summary

• The industrials sector is a strong starting point for top-down asset allocation in 2024.
• Corporación América Airports presents with short-term, mid-term, and long-term investment prospects.
• CAAP has shown strong growth in passenger traffic and has attractive return on incremental capital investments.

Investment briefing

Insights from our analysis of Q3 FY'23 earnings put the industrials sector as a strong starting point for top down asset allocation in 2024. As seen in Figure 1, by the end of Q3 last year, the industrials sector held just 8% of the market capitalization weighted S&P 500 index, but held 16% of the projected earnings growth for the coming 12 months....

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