10 Worst Airport Stocks to Buy

5. Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR)

Number of Hedge Fund Holders: 6

Average Analyst Price Target Upside: 12.16%

Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR), also known as ASUR, is a prominent Mexican airport operator based in Mexico City. It was established in 1998 as part of a government initiative to allow private investment in Mexico’s airport infrastructure.

According to its 2023 annual report, the company operates nine airports in southeastern Mexico. Some of the major ones include Cancún, which was the second busiest in Mexico in 2023 for passenger traffic and the busiest for international passengers. The company also manages airports in Cozumel, Huatulco, Mérida, Minatitlán, Oaxaca, Tapachula, Veracruz, and Villahermosa.

In Colombia, ASUR (NYSE:ASR) owns a controlling stake in Airplan, which operates multiple airports, including those in Medellín and Rionegro. Additionally, its subsidiary Aerostar manages the LMM Airport in San Juan, Puerto Rico, under a 40-year lease from February 2013.

The company’s revenue streams include aeronautical services, non-aeronautical services, and construction services. Aeronautical services, which are heavily regulated, usually generate the largest portion of revenue, followed by non-aeronautical services, which include commercial activities like leasing space to retailers and restaurants.

With an average price target of $321.02 among 17 analysts, ASUR (NYSE:ASR) has an average price target upside of 12.16%. While it makes it to the list of worst airport stocks to buy, recently analysts have been bullish on the stock.

On September 8, The Fly reported that Goldman Sachs analyst Joao Frizo resumed coverage of it with a Buy rating and a $338 price target. The firm believes that Mexican airports, including Asur, are a good investment because they are expected to grow their earnings strongly.

It also thinks that the current economic conditions are favorable for these companies. However, the firm also pointed out that there may be some increased risk from government regulations in Mexico after the upcoming presidential elections.