UPDATE: Citigroup Downgrades LATAM Airlines Group to Neutral on Competitive Concerns

Citigroup reduced its rating on LATAM Airlines Group

from Buy to Neutral and cut its price target from $33 to $27. Citigroup commented, "Even as LATAM's domestic Brazil operations should benefit from increased capacity discipline and tax breaks, Delta and American Airlines plans to significant increase their Brazil capacity represents an important threat to the carrier's international yields. Tepid global cargo demand trends also seem poised to have a greater impact on the carrier's operations. Uncertainties about the timing of LATAM's achievement of predecessor-LAN's investment grade credit status present another challenge to a more upbeat view on the shares." LATAM Airlines Group closed at $24.99 on Wednesday.