Corporación América Airports: Accelerating Traffic Growth To Power Next Leg Higher

Core Viewpoint - Corporación América Airports S.A. (CAAP) is a leading private airport concession holder with significant growth potential and currently undervalued stock despite a substantial increase in share price since 2020 [3]. Group 1: Company Overview - CAAP operates 52 airports across South America, Europe, and Eurasia, having started its operations in 1998 with the AA2000 concession in Argentina [1][2]. - The company manages major airports in Argentina until 2038 and has expanded its operations to Brazil, Italy, Armenia, Ecuador, and Uruguay, with plans for further expansion into markets like Nigeria and Angola [2]. Group 2: Financial Performance - The stock price of CAAP has increased from $2 per share in 2020 to nearly $20 per share currently, indicating strong market recovery and investor confidence [3]. - Despite this increase, the stock is considered to be substantially undervalued, suggesting potential for further growth [3]. Group 3: Traffic Growth - CAAP has reported a significant improvement in air traffic, mirroring trends seen in other airport operators like Grupo Aeroportuario del Centro Norte, which experienced a traffic increase of over 9.9% as of January 2025 compared to the previous year [4][5]. - The company’s air traffic data for January 2025 compared to January 2024 shows a positive trend, indicating robust recovery and growth in passenger numbers [5].