Grupo Aeroportuario del Pacifico (PAC) (“GAP”) has seen a bit of a split recently between underlying operating performance and investor enthusiasm for the shares. While traffic has recovered at a faster-than-expected rate since my last update, and management has not only done a good job of managing costs and the reopening process but also started returning cash to shareholders, the stock has just kind of puttered along – outperforming Grupo Aeroportuario del Centro Norte (OMAB)and Grupo Aeroportuario del Sureste (ASR), but not really moving much.
Perhaps none of the Mexican airport operators are “gotta buy it NOW” cheap, but I do think GAP is back at a level where investors can reasonably expect a long-term total return in the double-digits as traffic continues to recover and as GAP continues to implement new tariffs and non-aero revenue-generating ideas.
Read the full article here:
Grupo Aeroportuario Del Pacifico Shares Don't Fully Reflect Improving Traffic
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