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BofA downgrades GAP Airports to Underperform on ‘rich valuation’

BofA downgraded GAP Airports (PAC) to Underperform from Neutral with a price target of $258.40, up from $213.50. The firm cites the stock’s “rich valuation” for the downgrade, noting the shares are trading at a historically high 38% premium to the average multiple of peers. In addition, the slowing Mexican economy “could spur headwinds ahead,” the analyst tells investors in a research note. BofA remains cautious on a stronger than expected traffic recovery in Mexico.

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