Corporacion America Airports: Resilient Operations Set For Upswing With Argentina's Revival

Summary

• Corporacion America Airports SA is a $3 billion international airport operator with significant exposure to Argentina, generating revenue through both aeronautical and commercial streams.
• Despite challenging conditions, CAAP's revenue in Q2 remained nearly flat, with a decline in Argentina due to inflationary pressures, offset by growth in international passenger numbers and cargo volumes.
• Argentina's economic improvements, driven by President Milei's austerity measures and reduced inflation, coupled with expected enhancements in Brazil's airport infrastructure, signal potential positive shifts for CAAP's performance.
• CAAP outperforms peers in growth metrics, with strong historic and forward-looking projections, yet remains undervalued based on its low earnings, sales, book value, & cash flow multiples.

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Corporacion America Airports SA (NYSE:CAAP) is a $3 billion airport concession operator with a presence in Argentina, Armenia, Brazil, Ecuador, Italy, and Uruguay. The company operates a large international airport in Argentina, as well as mid-sized regional airports in attractive tourist

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.