(ASR) Grupo Aeroportuario del - Ratings and Ratios

Grupo Aeroportuario del Sureste SAB de CV (ASR) is a Mexican airport operator with a diversified portfolio of concessions to manage airports in Mexico, Colombia, and Puerto Rico, generating revenue through aeronautical and non-aeronautical services, including passenger and aircraft handling, retail leasing, and ground transportation services.

The companys strategic presence in the southeast region of Mexico, coupled with its operations in Colombia and Puerto Rico, positions it for growth in a region with increasing air travel demand, driven by tourism and economic development, with a strong track record of delivering returns on equity.

With a market capitalization of $9.66 billion USD and a forward P/E ratio of 14.58, ASRs valuation suggests a reasonable expectation of future earnings growth, supported by its robust return on equity of 27.12%, indicating efficient capital allocation and a competitive advantage in the airport services industry.

Analyzing the technical data, the stocks recent price action indicates a bullish trend, with the last price above both the 20-day and 50-day simple moving averages, and a relatively low average true range of 2.95%, suggesting a stable trading environment, with potential for further upside, given the stocks proximity to its 52-week high.

Forecasting future performance, we can expect ASR to continue its growth trajectory, driven by increasing air travel demand, particularly in the tourism-driven markets it serves, with potential for further expansion in its existing and new markets, leveraging its operational expertise and concession holdings, potentially driving earnings growth and further revaluation, with a target price above $350, representing a 7-10% upside from current levels, based on the convergence of its technical and fundamental trends.