CAAP - Corporación América Airports: Risks Exist But A Cautious Buy
2024-02-21 03:10:36 ET
Summary
- Corporación América Airports S.A. is recovering well from the pandemic, reaching 96.2% passenger traffic of its 2019 levels.
- Despite a difficult period during the pandemic, the company has managed to improve its return metrics and decrease dependence on borrowings.
- Compared to its peers, it is underpriced, but trailing multiples suggest the future growth in return metrics to slow.
- An alternative valuation technique confirms the statement that the company is a "Buy."
The airport services industry is among those that are continuing to recover from the pandemic period. Recently reaching 96.2% passenger traffic of its 2019 levels, I would like to analyze Corporación América Airports ( CAAP ). The company has the potential to further deliver improving results and create value for its shareholders. I assign a “Buy” rating with a potential appreciation of more than 20%. To prove my statement, I will analyze its multiples and further support the statement's analysis, providing a price target for its shares....
Corporación América Airports: Risks Exist But A Cautious Buy