On Monday, Citi analysts announced an increase in the price target for Corporacion American Airports SA (NYSE:CAAP) shares, raising it to $23.00 from the previous $21.00. Alongside this adjustment, the firm has maintained a Buy rating on the stock. According to InvestingPro data, CAAP is currently trading at $18.40, suggesting potential upside to analyst targets ranging from $19.00 to $24.50. The stock appears undervalued based on InvestingPro’s Fair Value model. The revised price target reflects a series of forecast adjustments for the global airport operator, which include expectations for better traffic volume growth and slight improvements in the working capital cycle. These updates have been integrated into Citi’s financial model for CAAP.
The new estimates from Citi suggest an upward revision in earnings per share (EPS) for the company, moving from previous projections of $1.78 for this year, $3.00 for the next, and $4.10 for the year 2027E, to updated forecasts of $1.83, $3.11, and $4.27, respectively. The company’s current P/E ratio of 10.34 appears attractive relative to its growth prospects, with trailing twelve-month revenue growth of 31.66% and net income of $282.67 million. The EPS adjustments are based on the latest fourth quarter of 2024 and full-year results for 2024, which have been factored into the analysis.
Despite a slight increase in the weighted average cost of capital (WACC) from 15.0% to 15.3%, Citi’s discounted cash flow (DCF) analysis still supports an enhanced target price for Corporacion American Airports SA stock. The minor uptick in the WACC does not seem to have significantly affected the overall positive outlook for the company’s share value, as indicated by the raised price target.
Citi’s commentary on the rationale behind the price target increase and maintained Buy rating was provided by analyst Stephen Trent. Trent’s analysis incorporated the latest financial results and forecasts for the global airport operator, leading to the more optimistic valuation of the company’s shares.
Investors and market watchers will be observing the performance of Corporacion American Airports SA stock following this updated assessment from Citi. The firm’s analysis suggests confidence in the company’s growth potential and financial prospects in the coming years. InvestingPro analysis supports this outlook, with the company receiving a "GREAT" financial health score of 3.41. Subscribers can access the comprehensive Pro Research Report, which provides detailed analysis of CAAP among 1,400+ top US stocks, along with additional valuable insights and metrics.
In other recent news, Corporacion America Airports reported its fourth-quarter 2024 earnings, meeting analyst expectations with an earnings per share (EPS) of $0.21 and revenue of $461.1 million, surpassing the anticipated $396.52 million. The company experienced a slight decline in total revenues by 0.6% year-over-year, despite an increase in revenue per passenger to $19.3. Notably, adjusted EBITDA decreased by 7% to $151 million, reflecting challenges such as a 1.2% year-over-year decline in passenger traffic. On the financial front, the company reduced its net debt to $718 million from $963 million in December 2023, maintaining a strong cash flow and a robust financial position. Corporacion America Airports also expressed optimism about Argentina’s domestic traffic recovery in 2025 and is exploring mergers and acquisitions opportunities globally. The management highlighted strategic initiatives to expand route connectivity and enhance commercial operations. While the stock fell by 4.41% in pre-market trading, the company maintains a cautious yet optimistic outlook for the coming year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.