OMAB - Grupo Aeroportuario Del Pacifico Still Offers Reasonable Potential As Domestic Travel Recovers

• Mexico's airport operators saw surprisingly better traffic in March, with GAP posting 10% domestic passenger growth on stronger traffic to domestic tourist locations like Tijuana and Los Cabos.
• GAP secured a surprisingly accommodating renegotiation of its MDP in November, with lower capex demands through 2024 and higher allowed tariffs boosting the FCF outlook and offsetting some pandemic impact.
• The shares have been strong since the fall of 2020 on optimism around COVID-19 vaccines, the renegotiated MDP, and traffic recoveries, but the shares still offer decent long-term return potential.

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