The following excerpts explain why Zacks senior Latin American markets analyst Claudio Freitas, CFA is now bullish on Grupo Aeroportuario del Sureste, S.A. de C.V. (ASR), the mid-cap Mexican airline:

'We are changing our current recommendation on Grupo Aeroportuario del Sureste, S.A. de C.V. from Hold to Buy. Third quarter results were very positive, including strong commercial revenues and improved operating margins. The opening of terminal 3 at the Cancun airport was the main reason for the great performance in the quarter.

'The company has a long history of impressive results and strong cash flow generation. The short-term outlook is now more positive due to the increasing commercial revenues.

'At its current price, ASR is trading at 20.1x our 2007 revised EPS estimate. This is below the industry mean and median P/E multiple.

'First, second and third quarters showed some good figures and the short-term outlook for growth in non-aeronautical revenues is encouraging thanks to the new terminal at Cancun airport. The possibility of the construction of a new airport in the Mayan Riviera is concerning, but this is just a medium-term problem that will not change our short-term positive view.

'We project that in the following months the stock will trade with a 2007 P/E close to the industry mean, between 23x and 24x our 2007 earnings estimates, in line with the company historical standards. Our target price is $70.25.'