Grupo Aeroportuario del Sureste: The Colombian Airports Are Gaining Altitude (Rating Upgrade)

2025-01-15 10:12:07 ET

Summary

• Sureste underperformed in 2024 due to weakness at its flagship Cancun airport.
• However, the company's international airports are reporting sizzling growth, and the picture is better for Mexico in 2025 as well.
• I believe investors are overly nervous about the new Tulum airport's impact on Sureste's Cancun property.
• I am upgrading Sureste to a buy as its 2025 prospects are solid while the share price has lagged peers over the past year.

Grupo Aeroportuario del Sureste (NYSE: ASR ) is one of Mexico's three publicly traded airport operators. It controls nine airports in Mexico, along with six more in Colombia and one in Puerto Rico. Its most important properties include Cancun, Medellin, and San Juan, PR.

This is my seventh public article about Sureste Airports on Seeking Alpha with my coverage dating back to 2016. I'd refer you to my prior work for a more exhaustive review of the company's business model and developments over the years. I also have numerous articles on its two main peers, Grupo Aeroportuario del Centro Norte (NASDAQ: OMAB ) and Grupo Aeroportuario del Pacifico (NYSE: PAC ) if you're looking for more insight into the overall Mexican airport space....

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