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Friday - Citi analysts have maintained their Sell rating on Grupo Aeroportuario del Centro Norte (NASDAQ:OMAB), alongside a steady price target of $64.00. While InvestingPro data shows the stock has gained over 24% in the past six months and currently trades at $75.70, analysis suggests the shares are moderately overvalued. The firm’s assessment follows a review of the company’s recent traffic statistics, which showed positive trends for the months of January and February. The results surpassed Citi’s initial estimates for the first quarter, despite the shorter month of February and its challenging year-over-year comparison.
Analysts noted that the traffic improvement could be partially attributed to VivaAerobus, a privately-held airline, which may have expanded or introduced additional wet leases, thereby boosting passenger volumes. Additionally, Grupo Aeroportuario del Centro Norte’s Acapulco Airport facility is benefiting from an easier year-over-year comparison due to previous disruptions caused by hurricanes. The company maintains impressive gross profit margins of 65.3% and a healthy dividend yield of 4.88%, according to InvestingPro data.
Despite the favorable traffic data, Citi’s reiteration of the Sell rating reflects concerns over the company’s valuation and the potential impact on traffic growth from the upcoming Master Development Plan (MDP) review set for this year. The MDP review could have significant implications for the company’s strategic direction and investment priorities. Trading at a P/B ratio of 7.21x and P/E of 15.25x, the stock’s valuation metrics warrant careful consideration.
The Sell rating suggests that Citi analysts remain cautious about the stock’s future performance, considering the broader context of the company’s operational and financial outlook. The price target of $64.00 has been reiterated, indicating that the analysts have not altered their valuation since their last assessment.
Investors and market watchers will likely monitor how Grupo Aeroportuario del Centro Norte’s stock responds to this rating and the company’s progress with its Master Development Plan review in the coming months.
In other recent news, Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA, reported its financial results for the fourth quarter of 2024, showing a mixed performance. The company maintained its Adjusted EBITDA at Ps.9,069 million for the year, despite a 1.2% decrease in passenger traffic, totaling 26.5 million passengers. However, in the fourth quarter, OMA experienced a 4.6% increase in passenger traffic compared to the previous year, with significant growth in Monterrey and Acapulco airports. Revenues from both aeronautical and non-aeronautical sources rose by 13.6% during the same period.
In January 2025, OMA saw a 9.9% surge in passenger traffic, with international travel increasing by 24.0%. This growth included the introduction of a new route, contributing to the positive trend. In December 2024, the company also reported a 9.1% increase in passenger numbers, driven by a 26.1% rise in international traffic and the addition of new routes. Despite these gains, OMA’s net income decreased by 5.9% in the fourth quarter due to increased operating and financing expenses. The company secured a Ps.600 million short-term financing in November 2024 to support working capital needs, partially repaid by February 2025.
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