BofA Securities Downgrades Grupo Aeroportuario del Pacifico (PAC) to Neutral

BofA Securities analyst Carlos Peyrelongue downgraded Grupo Aeroportuario del Pacifico (NYSE: PAC) from Buy to Neutral with a price target of $205.00 (from $213.00).

The analyst comments "We downgrade Grupo Aeroportuario de Pacifico (Gap) to Neutral from Buy and decrease our price objective (PO) to P$420.5 per share (US$204.5/ADR) from P$439.2/share (US$212.9/ADR). Our lower PO is driven by a downward revision in our estimates after incorporating 2025 guidance that assumes a slower-than-expected implementation of approved new maximum tariffs in Mexico, and valuation adjustments (see inside for details). Partially offsetting the impact of lower 2025 and 2026 estimates is the upward revision of our estimates as of 2027 in our discounted cash flow valuation. After a 12- month share price rally of 57%, we now see Gap as richly valued. Gap trades at a 12- month forward EV/EBITDA multiple of 11.2x, which is 1 standard deviation above its 4- year historical average multiple. However, our PO implies 10.5% upside potential plus a 2025E dividend yield of 3.8%, which translates into an expected total return of 14.3%, hence our Neutral rating."

For an analyst ratings summary and ratings history on Grupo Aeroportuario del Pacifico click here. For more ratings news on Grupo Aeroportuario del Pacifico click here.

Shares of Grupo Aeroportuario del Pacifico closed at $186.76 yesterday.

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