UPDATE: Deutsche Bank Upgrades LATAM Airlines Group SA to Buy, Raises PT on Upcoming Catalysts

In a report published Thursday, Deutsche Bank analyst Michael Linenberg upgraded the rating on LATAM Airlines Group SA

from Hold to Buy, and raised the price target from $23.00 to $27.00. In the report, Linenberg noted, “We are upgrading our rating on LATAM Airlines Group S.A. ADR shares from Hold to Buy as we see a number of upcoming catalysts that should lead to improved profitability: (1) an expected slowdown in LATAM's international capacity growth plan; (2) the anticipated approval of TAM's code share with American Airlines; and (3) a material pullback in jet fuel prices, which should result in a solid earnings tailwind and boost the company's liquidity profile, in our view. Moreover, we think the stock's recent underperformance creates an attractive entry point for investors; LFL is down 14% YTD vs. most major Chilean indices, which are flat to down 1% (in USD).” LATAM Airlines Group SA closed on Wednesday at $20.28.