Jefferies Initiates on Grupo Aeroméxico (AERO) at Hold and Points to Premium Fares as Its Strongest Bull Case

Grupo Aeroméxico S.A.B. de C.V. (NYSE:AERO) is one of the best Seth Klarman portfolio stocks to buy. On June 18, Jefferies initiated stock coverage of Grupo Aeroméxico S.A.B. de C.V. (NYSE:AERO) with a Hold rating and a price target of $20. Alejandro Demichelis, who leads Jefferies’ Latin America equity research team, made the call.

Demichelis and his team pointed to Grupo Aeroméxico’s premium fares and strong international route network as reasons for optimism. These factors give the airline an edge in generating higher revenue per passenger, the analysts noted.

However, the analysts flagged that regulatory limits currently restrict new US-Mexico routes and that domestic competition in Mexico remains intense. They added that the airline’s plans to expand its fleet are limited compared to rival carriers.

Based on the balanced view, Jefferies calculated that Aeroméxico trades at roughly 3.5 times its projected 2027 enterprise value to EBITDAR. In the firm’s view, this level aligns with similar airlines and that it is not a bargain.

This coverage initiation comes roughly seven months after Aeroméxico returned to the New York Stock Exchange; it relisted on November 6, 2025. The airline had previously delisted from public markets to undergo a Chapter 11 bankruptcy restructuring brought on by the COVID19 pandemic.

Grupo Aeroméxico, S.A.B. de C.V. (NYSE:AERO) is a full-service airline carrier headquartered in Mexico City, Mexico. It provides public air transportation services for passengers and cargo.

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