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Investing.com - Jefferies has raised its price target on Corporacion American Airports SA (NYSE:CAAP) to $28.00 from $26.00 while maintaining a Buy rating on the stock. The airport operator, currently valued at $3.38 billion, has demonstrated strong financial health with an overall score of "GREAT" according to InvestingPro analysis.
The price target increase follows CAAP’s second-quarter 2025 adjusted EBITDA (excluding IAS29) of $168 million, which represented a 7% quarter-over-quarter increase and exceeded FactSet consensus by approximately 5%. The company’s trailing twelve-month EBITDA stands at $624 million, supported by impressive revenue growth of 28.5% year-over-year. InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value assessment.
According to Jefferies, the main factor driving the earnings beat was a 19% quarter-over-quarter jump in commercial revenues, primarily from cargo operations in Argentina and Brazil.
Management reported ongoing progress in rebalancing the Argentine concession and expanding terminals in Italy and Armenia, according to the research note.
Jefferies has increased its 2025-2027 EBITDA estimates for CAAP by 4%, citing the strength of the company’s Argentinean business operations.
In other recent news, Corporación América Airports reported second-quarter revenue that exceeded analyst expectations, driven by a notable increase in passenger traffic, especially in Argentina. The company posted revenue of $453.2 million, surpassing the consensus estimate of $436.91 million. However, earnings per share were reported at $0.30, which fell short of the expected $0.43. Revenue excluding construction services saw an 18.9% year-over-year increase, reaching $435.2 million. Additionally, commercial revenues rose by 22.0%, while aeronautical revenues increased by 15.1%. These figures reflect a strong performance across the company’s airport network. Analysts have yet to provide any upgrades or downgrades following these results. These developments provide investors with important insights into the company’s financial health and operational progress.
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