Mexican airport companies had come under selling pressure in the past six months based upon fractious commentary from certain US presidential candidates. It seems self-evident to conclude a democratic presidential win shall be considered positive for the Mexican airport operators in general (OMAB, PAC, ASR).
Until now, a relatively close set of polling numbers placed at least a possibility of the republican candidate win. Such a possibility weighed heavily upon the airport manager group in general; this negative sentiment has more than offset the significant reported passenger growth rates reported, year to date.
At this latter stage in the US electoral cycle, all else being equal, this author is of the opinion that the democratic candidate is heavily favored to win the presidential bid. By implication, this suggests that the Mexican airport sector is now undervalued and poised for gains over the next year.
It may be an opportune time for the global model portfolio to overweight PAC specifically, and the group in general.
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