UPDATE: Bradesco BBI Upgrades Grupo Aeroportuario del Centro (OMAB) to Outperform

(Updated - February 8, 2022 5:56 AM EST)

Bradesco BBI analyst Rodolfo Ramos Cevallos upgraded Grupo Aeroportuario del Centro (NASDAQ: OMAB) from Neutral to Outperform with a price target of $65.00 (from $50.00).

The analyst comments "We are raising OMA to Outperform (from Neutral), with a DCF based YE22 TP of US$65/ADR (from US$50.00) on the back of a broader recovery in business travel later this year and its attractive valuation. We estimate OMA’s passenger traffic recovering to pre-pandemic levels by 2023 (Figure 3), in line with the company’s estimates and eight months earlier than our previous forecast. Our sensitivity analysis shows that the shares are currently pricing in a ~25% traffic adjustment vs. pre-pandemic levels, which seems high, in our view. Our base case assumes 10% of OMA’s traffic is structurally lost. Furthermore, valuations seem attractive at EV/EBITDA multiples of 9.1x for 2022E and 7.8x for 2023E, representing 19% and 31% discounts to its historical average. Relative to ASUR’s and GAP’s multiples, OMA’s discount is around 19% vs. the 2016-2019 average of 15%."

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

Shares of Grupo Aeroportuario del Centro closed at $54.46 yesterday.

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