Asur initiated with an Overweight at Morgan Stanley

Morgan Stanley analyst Jens Spiess initiated coverage of Asur with an Overweight rating and $415 price target. The firm started coverage of the Latin America transportation and infrastructure space, including car and machinery rentals, airlines, industrials, airports and infrastructure concessions. Several of the industries are going through turbulent times, which offers opportunities, but also poses risks, the analyst tells investors in a research note. The firm says the car rental market in Brazil is facing headwinds from a challenging used car market that is temporarily impacting profitability for rental companies. Airports in Mexico have faced considerable regulatory uncertainty over the past year and are not spared from supply constraints of the airline industry, it adds. That said, amid these challenges, Morgan Stanley sees idiosyncratic factors that could drive stock performance.