Stock Research and Analysis

by Neal Dihora, CFA

Bulls Say

Like ASUR and OMA, GAP doesn't face any competition in its operating region, and this leads to monopolylike positions.
GAP's largest airport only accounts for roughly one third of its total traffic, which is much lower than other operators, limiting its dependence on any single airport.
The company has refocused its efforts on highly profitable commercial revenue, which has grown in the double digits over the past seven quarters. Read more 

Bears Say

Several low-cost airlines went bankrupt during the fuel price spike and the worldwide recession. High fuel costs could again bring bad news for airport operators.
Unpredictable foreign exchange changes affect nearly 30% of commercial revenue and all of the international passenger charges, which could lead to material changes in operating performance.
Government confiscation of airport concessions or sale of new concessions in GAP's geographic region could pressure operating results. Read more 

Management

Fernando Bosque recently took over as CEO with the resignation of Jorge Sales Martinez due to health issues. Bosque has 34 years of industry experience, including a stint as CEO of MBJ Airports, the operator of Jamaica's Sangster International Airport--the   Read more 

Profile

Grupo Aeroportuario del Pacifico owns the rights to operate 12 airports in Mexico's Pacific region through 2048, including Guadalajara and Tijuana, Puerto Vallarta, and   Read more 

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