Scotiabank flips ratings, upgrades GAP Airports, downgrades Asur

As previously reported yesterday afternoon, Scotiabank downgraded Asur (ASR) to Sector Perform from Outperform with a MXN 703 price target, down from MXN 800, and upgraded GAP Airports (PAC) to Outperform from Sector Perform with a MXN 506 price target, up from MXN 384. Constraints to seat supply are easing and airlines are more likely to switch to “volume before value” strategies, says the analyst, who thinks the Mexican “airlines over airports trade” may be reversing. The downgraded of Asur to Neutral and upgraded of GAP to Buy “is both a valuation call, and a relative earnings momentum call,” the analyst tells investors.