7. Grupo Aeroportuario del Centro Norte SAB de CV (NASDAQ:OMAB)
Average Price Target Upside Potential According to Analysts: 17.59%
Average Share Price Target Projected by Analysts: $78.49
Grupo Aeroportuario del Centro Norte SAB de CV (NASDAQ:OMAB), better known as OMA, is a Mexican airport operator that ranks among the best airport stocks to buy. The company holds the concessions to operate, manage, and develop 13 international airports in the central and northern regions of Mexico. OMA’s unique business model focuses on developing and operating airports that serve a diverse mix of metropolitan areas, tourist destinations, regional centers, and border cities. This balanced portfolio allows the company to capitalize on growth opportunities in different sectors. Grupo Aeroportuario del Centro Norte SAB de CV (NASDAQ:OMAB) airports serve major cities like Monterrey, as well as popular tourist destinations such as Acapulco, Mazatlán, and Zihuatanejo. Additionally, the company operates the NH Collection Hotel located in Terminal 2 of Mexico City airport and the Hilton Garden Inn at Monterrey airport.
OMA provides a range of airport and commercial services to passengers and clients within its facilities. The majority of the company’s revenue comes from aeronautical services, which include passenger charges, landing fees, parking fees, and airport security charges. In addition to these regulated services, Grupo Aeroportuario del Centro Norte SAB de CV (NASDAQ:OMAB) also generates significant income from commercial activities, such as restaurants, retail shops, duty-free stores, car rentals, and parking. The company is focused on creating new revenue streams through businesses that complement air travel, including hotels, real estate, and logistics services.
Grupo Aeroportuario del Centro Norte SAB de CV (NASDAQ:OMAB) is showing promising signs of potential growth, making it an attractive stock to consider. In Q2 2024, the company reported a total passenger traffic of 6.5 million, slightly down by 2.4% from the second quarter of last year. This was primarily due to external factors like the Pratt & Whitney engine recall. However, international passenger traffic surged by 12% compared to the second quarter of 2023, largely driven by strong performance at Monterrey Airport, which saw significant increases in routes to cities like Atlanta, Las Vegas, Toronto, and Orlando. In the first half of 2024, the company launched six new international routes, further strengthening OMA’s connectivity and positioning the company well for future growth.
In the second quarter of 2024, Grupo Aeroportuario del Centro Norte SAB de CV (NASDAQ:OMAB) reported an 11.9% increase in commercial revenues year-over-year, with notable growth in VIP lounges, parking, and restaurants. The company successfully completed the expansion of the Terminal A East public area, adding over 6,000 square meters of space, which includes new documentation counters and commercial outlets, increasing Monterrey International Airport’s capacity to 13.9 million passengers annually. OMA is also actively investing in expanding and remodeling terminal buildings in Ciudad Juárez, Torreon, Culiacan, Durango, and Mazatlan.
During the Q2 2024 earnings call, CEO Ricardo Dueñas Espriu announced that Grupo Aeroportuario del Centro Norte SAB de CV (NASDAQ:OMAB) invested MXN 816 million in its Master Development Program, along with major maintenance and strategic projects. These investments and developments reflect the company’s commitment to enhancing its infrastructure and operational capabilities to support future growth and improve passenger experience.
Over the past ten years, Grupo Aeroportuario del Centro Norte SAB de CV (NASDAQ:OMAB) has grown its revenue at a compound annual growth rate (CAGR) of 15.44%, while its net income has increased at a CAGR of 15.11% during the same period. Over the past 10 years, the company has also grown its levered free cash flow by more than 43%.
As of September 11, OMAB’s stock is trading at $66.75, and analysts have a consensus buy recommendation for the stock. The median 1-year stock price target set by analysts is $78.49, indicating a potential upside of 17.59% from its current price.
