Slower Progress At Grupo Aeroportuario Del Centro Norte, But Progress All The Same

 

The last five to six months really haven’t seen all that many surprises for Grupo Aeroportuario del Centro Norte (OMAB) (“OMA”) other than better-than-expected expense control, as traffic has started to recover, but not at the same pace as for airports with more tourism and “visiting friends and relatives (or VFR) exposure – namely Grupo Aeroportuario del Pacifico (PAC) (“Pacifico”) and Grupo Aeroportuario del Sureste (ASR) (“Sureste”).

I still liked OMA when I last wrote about the stock in mid-March, though I did say that I thought that, “the obvious undervaluation has been soaked up” and that investors were looking more at a solid single-digit long-term return potential. Since then, the shares have lost about 10% of their value, underperforming Pacifico and Sureste by about 10% and 7.5%, respectively. With this recent underperformance, the absolute and relative valuation are much more interesting, and this is a name I’d definitely consider again, particularly with near-term worries about COVID-19 pressuring the sector.

 

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Slower Progress At Grupo Aeroportuario Del Centro Norte, But Progress All The Same