Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
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, however, revised its price target downward to Peso180.00 from the previous Peso199.00. The revision comes amid a reassessment of the company's potential, considering its current stock price levels.
Scotiabank's analyst believes that Grupo Aeroportuario del Centro exhibits upside potential at its current pricing. The upgrade reflects a more neutral view of the company's stock, suggesting that it may now perform in line with the broader sector expectations. This adjustment in rating indicates a shift from a previously more bearish outlook on the company's performance.
The bank's analyst pointed out several factors influencing their cautious stance despite the upgrade. One significant concern is the timing of OMA's new Master Development Plan (MDP), which is not expected to benefit cash flows until 2026.
Additionally, the grounding of A320neo planes could negatively impact passenger traffic, and this may not be adequately compensated by OMA's new tariffs, unlike its peers.
Further factors contributing to the tempered outlook include the higher concession fee that OMA is subject to, which is not anticipated to be offset until 2026. Moreover, the analyst noted that OMA might not benefit as much as other airport groups like GAP or ASUR from a weaker Mexican Peso (MXN).
In other recent news, Grupo Aeroportuario del Centro Norte, also known as OMA, reported a decline in passenger traffic for August 2024, with a 6.6% decrease compared to the same month the previous year.
The company also reported mixed results in its second-quarter earnings for 2024, with a 2.4% decrease in total passenger traffic and a 4.2% decrease in July 2024. Despite these declines, OMA announced the commencement of four new routes and launched a new route in August, which could contribute to future traffic growth.
Morgan Stanley upgraded OMA's stock from Equalweight to Overweight, noting the company's business model's low volatility and consistent profit margins. However, the firm lowered the price target to $77 from $82.
OMA also published its 2023 Sustainability Report and third Green Bond Report, demonstrating the company's commitment to environmental and sustainability goals. These reports detailed the company's progress in various activities and initiatives, including the allocation of proceeds and the environmental impact of projects funded by the Green Bond issued in 2021.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.