Scotiabank Upgrades Grupo Aeroportuario del Centro Stock, Analysts Optimistic about Potential Upside
Scotiabank has adjusted its stance on Grupo Aeroportuario del Centro (OMAB: MM) (NASDAQ: OMAB), upgrading the stock from Sector Underperform to Sector Perform. The bank revised its price target downward to Peso180.00 from Peso199.00, reflecting a more neutral view of the company's stock.
Despite the upgrade, the analyst remains cautious about OMA's performance, citing concerns about the timing of the new Master Development Plan and potential impact of grounded A320neo planes on passenger traffic. Additionally, higher concession fees and limited benefits from a weaker Mexican Peso are factors contributing to the tempered outlook.
In other news, OMA reported a decline in passenger traffic for August 2024, along with mixed results in second-quarter earnings. However, Morgan Stanley upgraded OMA's stock to Overweight, highlighting the company's low volatility and consistent profit margins.
OMA's commitment to environmental and sustainability goals was demonstrated through the publication of its 2023 Sustainability Report and third Green Bond Report, showcasing progress in various initiatives.
In conclusion, while Scotiabank's upgrade indicates potential upside for Grupo Aeroportuario del Centro, investors should remain cautious due to several lingering concerns. The mixed results in recent earnings and declining passenger traffic also suggest a need for careful monitoring of OMA's performance in the coming months.