Jefferies raises Corporacion American Airports stock price target to $28

Jefferies has raised its price target on Corporacion American Airports SA (NYSE:CAAP) to $28.00 from $26.00, maintaining a Buy rating, following the company's robust second-quarter performance. CAAP reported adjusted EBITDA of $168 million, exceeding FactSet consensus by 5%, and revenue of $453.2 million, surpassing analyst expectations, largely driven by a 19% quarter-over-quarter surge in commercial revenues, particularly from cargo operations in Argentina and Brazil. Although earnings per share of $0.30 fell short of the $0.43 consensus, Jefferies increased its 2025-2027 EBITDA estimates by 4%, citing the strength of the company's Argentinean business operations, indicating continued confidence in the airport operator's financial trajectory.

Analysis

Corporacion American Airports SA (CAAP) has received a bullish update from Jefferies, which raised its price target to $28.00 from $26.00 while reiterating a Buy rating. This revision follows a strong second-quarter 2025 performance where adjusted EBITDA reached $168 million, beating FactSet consensus by 5% and marking a 7% sequential increase. The primary driver for this outperformance was a significant 19% quarter-over-quarter surge in commercial revenues, led by cargo operations in Argentina and Brazil. Top-line results were also robust, with total revenue of $453.2 million surpassing the consensus estimate of $436.91 million, supported by a 22.0% year-over-year rise in commercial revenues and a 15.1% increase in aeronautical revenues. Despite this operational strength and an InvestingPro assessment of "GREAT" financial health, the company's earnings per share of $0.30 fell short of the $0.43 analyst expectation. Nonetheless, Jefferies has increased its 2025-2027 EBITDA estimates for CAAP by 4%, signaling confidence in the sustained momentum of its Argentinean business operations and management's progress on concession rebalancing.

Key Decisions for Investors

• Given the strong EBITDA beat, positive revenue trends, and Jefferies' increased price target to $28, investors may view the recent EPS miss as a secondary concern compared to the robust operational momentum.
• Investors should closely monitor the performance of commercial revenues, especially cargo operations in Argentina and Brazil, as this segment was the key driver of the earnings beat and is central to Jefferies' upgraded EBITDA forecast.
• While the stock is flagged as potentially undervalued, the discrepancy between strong revenue growth and the EPS shortfall warrants a cautious assessment of the company's ability to convert top-line strength into bottom-line profitability.