Citi reiterates Buy rating on Corporacion America Airports stock

Investing.com - Citi has reiterated a Buy rating and $24.00 price target on Corporacion America Airports SA (NYSE:CAAP), a $3.28 billion market cap company currently trading at $20.08, following the release of June traffic statistics. According to InvestingPro analysis, CAAP is currently undervalued with a GREAT financial health score.

The global airport operator reported an 11.3% year-over-year increase in system-wide passenger traffic for June. Domestic traffic rose 11.7%, international traffic increased 9.2%, and transit passenger traffic grew 18.5% compared to the same period last year. This strong performance aligns with CAAP’s impressive 28.46% revenue growth over the last twelve months.

By region, CAAP’s passenger flow in Argentina increased 14.2%, Italy rose 7.2%, Brazil grew 12.5%, and Armenia expanded 9.3% year-over-year. The Brazilian comparison excludes the Natal Airport concession, which the company terminated last year.

For the second quarter of 2025, preliminary statistics show CAAP’s traffic increased 17.3% in Argentina, 9.4% in Italy, 15.3% in Brazil, and 8.1% in Armenia.

These results exceeded Citi’s second-quarter traffic growth estimates of 8.6% for Argentina, 3% for Italy, 0.9% for Brazil, and 8% for Armenia. With earnings scheduled for August 14, InvestingPro subscribers can access additional insights and 5+ exclusive ProTips about CAAP’s financial outlook and valuation metrics through our comprehensive Pro Research Report.

In other recent news, Corporación América Airports S.A. reported first-quarter earnings that did not meet analyst expectations. The company posted adjusted earnings per share of $0.25, falling short of the consensus estimate of $0.48. Revenue for the quarter was $447.8 million, also below the projected $505.81 million. Despite this, the company experienced a 7.3% year-over-year increase in passenger traffic, totaling 20.4 million, and a 9.1% rise in cargo volume to 95,900 tons. Revenue excluding construction services grew 6.4% year-over-year to $416.9 million, while adjusted EBITDA excluding IAS 29 accounting increased 4% to $157.9 million.

In another development, Corporación América Airports has acquired the remaining 25% stake in Corporación América Italia S.p.A. from the Investment Corporation of Dubai, achieving full ownership. This acquisition enhances CAAP’s indirect economic interest in Toscana Aeroporti S.p.A. by 15.6%, strengthening its presence in the Italian airport sector. The transaction involved a share swap, with CAAP issuing 1,996,439 new shares to ICD. An independent international firm provided a fairness opinion to ensure the deal’s equitable valuation.

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