11 Worst Aviation Stocks to Buy According to Analysts

9. Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE:PAC)

Average Analyst Price Target Upside as of September 16: 2%

Number of Hedge Fund Holders: 7

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE:PAC), also known as GAP Airports, is an airport operator based in Guadalajara, Mexico, with a significant presence in the Western states of Mexico and Jamaica. The company operates, maintains, and develops 14 airports across the Pacific and Central regions of Mexico and the Caribbean.

GAP Airports (NYSE:PAC) generates revenue from various sources, including fees charged to airlines, passengers, and other users of its facilities, as well as rental income from commercial activities like leasing space to restaurants and retailers.

The airports under the company’s management include key locations such as Guadalajara, Tijuana, Puerto Vallarta, Los Cabos, and several others in Mexico, as well as Sangster International Airport and Norman Manley International Airport in Jamaica. It serves a diverse range of customers, including airlines, cargo companies, commercial brands, and travelers.

GAP Airports (NYSE:PAC) has been covered by 17 analysts with less than 50% of them maintaining a Buy-equivalent rating. The average price target of $181 shows an upside of 2% to the company’s stock, as of September 16.

On September 5, The Fly reported that JPMorgan analyst Guilherme Mendes downgraded the company to Underweight from Neutral, despite raising the price target to MXN 365 from MXN 325. The analyst explained that this decision was based on limited potential for further stock gains, even after considering the new master development program. Mendes also noted that the stock carries a higher valuation compared to its peers, trading at a 20% premium, which contributed to the downgrade.

On September 7, Grupo Santander revised its rating for GAP Airports (NYSE:PAC) to Neutral from Outperform with a price target of $81. The change reflects the view that the positive outlook for the company has already been factored into its stock price. The analyst believes that the stock’s current valuation presents a balanced risk-reward scenario for investors.