OMA Airports: Significant Discount Due To Market Disruptions

2025-03-19 06:02:07 ET

Summary

• OMA Airports' stock has surged 29.4% since November, outperforming the S&P 500, despite trade tensions between the US and Mexico.
• Monterrey's nearshoring potential and capacity cap at Mexico City present growth opportunities, but trade turmoil and GDP growth concerns pose risks.
• Operating income remains stable despite a 9.4% rise in costs and an 81.8% increase in concession taxes, with strong EBITDA margins.
• I maintain a $115.50 price target for OMA, driven by Monterrey's development, Volaris' capacity recovery, and anticipated reversion of excess concession taxes.

In November, I covered Grupo Aeroportuario del Centro Norte ( OMAB )( OTCPK:GAERF ) with a buy rating and a $93.60 price target. The stock has gained 29.4% since then, outperforming the S&P 500....

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