Stock Research and Analysis

by Neal Dihora, CFA

Bulls Say

Like ASUR and OMA, GAP doesn't face any competition in its designated operating region, and this leads to a monopoly-like position.
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. A spike in fuel prices could lead to capacity changes in the future.
Unpredictable foreign exchange changes affect nearly 30% of commercial revenue and all of the international passenger charges, which would affect operating performance.
Government confiscation of airport concessions or sale of new concessions in GAP's geographic region would hurt traffic and 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 was created in 1998 following a decision by the Mexican government to privatize some of the country's airports. GAP owns the rights to operate   Read more 

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