UPDATE: J.P. Morgan Upgrades LATAM Airlines Group SA to Neutral, Reiterates $25 PT on Good Upside Potential

In a report published Tuesday, J.P. Morgan analyst Fernando Abdalla upgraded the rating on LATAM Airlines Group SA LFL from Underweight to Neutral, and reiterated the $25.00 price target. In the report, Abdalla noted, “We are upgrading the company to Neutral from UW. YTD shares have underperformed the market and peers, now implying 18% upside potential. Nevertheless, we still believe that the current valuation premium to its LatAm peers (12% on a 2013E EV/EBITDAR basis) is a bit excessive due to the execution risks related to the LAN/TAM integration, and the challenging cargo and international passenger businesses outlook in the near term. Hence our Neutral rating on the stock.” LATAM Airlines Group SA closed on Monday at $21.27.