A Look at Corporación América Airports (NYSE:CAAP) Valuation as Passenger Growth and Policy Shifts Support Expansion

Corporación América Airports (NYSE:CAAP) has been catching attention as recovering air travel and Argentina's recent pro-business policies work together to drive increased passenger traffic and extended airport leases across its global portfolio.

See our latest analysis for Corporación América Airports.

CAAP’s share price recently edged up to $18.02 on the back of quarterly passenger growth and Argentina’s pro-business reforms, even though short-term share price returns are still in negative territory. Despite some ups and downs this year, the long-term story remains impressive, evidenced by a remarkable 145% total shareholder return over three years and more than 790% over five years. This shows real momentum for investors willing to look beyond the near-term volatility.

If you’re wondering where else this kind of growth might be taking off, now’s a perfect time to discover fast growing stocks with high insider ownership

But does this surge in performance mean CAAP’s shares are now undervalued based on its future prospects? Or have investors already priced in the company’s growth potential, leaving little room for further upside?

Most Popular Narrative: 28.9% Undervalued

With the most widely followed fair value at $25.34 compared to the most recent closing price of $18.02, the narrative is that the stock is trading below what analysts believe it's worth. Several ambitious expansion projects and resilient earnings trends set an optimistic tone for the outlook.

Ongoing major infrastructure investments, such as the Florence Airport Master Plan (recently environmentally approved), expansion projects in Armenia, and future growth opportunities in M&A and concessions, should increase capacity and competitiveness. These are expected to underpin future top-line and adjusted EBITDA expansion. Strong momentum in air cargo revenues, up 30% year-over-year and supported by improved pricing, new cargo business models, and e-commerce trends, is expected to drive a meaningful uplift in both revenue and EBITDA margins as global trade and logistics demand increase.

Read the complete narrative.

Curious what's driving this rapid fair value climb? One major catalyst rests in bold earnings projections, expanded passenger flows, and aggressive infrastructure upgrades, but the full story goes far deeper. Discover the key financial assumptions that make the analysts’ price target possible. See what you might be missing.

Result: Fair Value of $25.34 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent economic instability in Argentina and rising operational costs could quickly undermine these growth forecasts and reshape investor sentiment on CAAP.

Find out about the key risks to this Corporación América Airports narrative.

Build Your Own Corporación América Airports Narrative

If you see the story differently, or want to dive into the numbers on your own terms, you can build your personal view in just a few minutes. Do it your way

A great starting point for your Corporación América Airports research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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