UPDATE: J.P. Morgan Upgrades LATAM Airlines Group SA to Neutral on Good Upside Potential
In a report published Tuesday, J.P. Morgan analyst Fernando Abdalla upgraded the rating on LATAM Airlines Group SA (NYSE: 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.
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