Like Grupo Aeroportuario del Pacifico (PAC), Grupo Aeroportuario del Centro Norte (OMAB),
also known as "OMA", operates airports in Mexico under long-term
concessions from the government. While OMA should benefit from the same
surge in low-cost airlines as PAC and Grupo Aeroportuario del Sureste (ASR), OMA is looking to non-aerospace opportunities like real estate development to help drive growth.
OMA
may not look so interesting from the perspective of backwards-looking
valuation metrics, but the potential cash flow growth here makes this an
interesting name. OMA is more focused on domestic traffic than PAC, but
if the company's attempts to develop properties like hotels and cargo
facilities pan out, double-digit free cash flow growth and a fair value
in mid-$30's both seem reasonable.
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OMA Looking To Traffic And Non-Aeronautical To Drive Growth
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