OMAB - OMA Airports reinstated at Sell at Citi amid nearshoring concerns

2023-04-18 07:50:56 ET

Grupo Aeroportuario del Centro Norte ( NASDAQ: OMAB ) coverage was restarted at Citi on Tuesday, with the bank’s analysts taking a dim view of the stock’s trajectory.

“The shares look vulnerable to any potential hiccup in Mexico’s Nearshoring narrative,” equity analyst Stephen Trent told clients. “Following a hiatus, in which we were unable to publish on this name, Citi reinstates its Sell rating on the shares of OMA.”

He added that the valuation is somewhat lofty given the existing concerns even as traffic growth looks positive. The valuation does not incorporate “the risk of a US economic slowdown, or a worsening of alleged drug cartel and other violence – especially in Northern Mexico,” according to Trent’s analysis.

Read more on why Investing Groups Leader David Zanoni is conversely bullish on the name .

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