Barclays Reiterates an 'Overweight' on Gol Linhas (GOL); Main Winner From Creation of LATAM

Barclays reiterates an 'Overweight' on Gol Linhas Aereas Inteligentes (NYSE: GOL) price target lowered $1 to $14.

Barclays analyst says, "We are updating our models to incorporate 3Q results, October and November traffic figures, recent house revision of macro forecasts, lower industry growth projections, and deal with Delta Airlines (NYSE: DAL)." (Barclays raises FY11 EPS estimate from -2.63 to -2.47, but lowers FY12 from $0.79 to $0.77)

"In our view, the market is ignoring the effect of consolidation for repairing industry profitability. The LATAM deal likely means transference of aircrafts out of Brazil into more profitable markets where LFL currently operates (just as LAN Airlines (NYSE: LFL) did in the Colombian market in 2010). GOL, as a "pure" domestic player is the most exposed to the ease in the Brazilian competitive environment."

For an analyst ratings summary and ratings history on Gol Linhas Aereas Inteligentes click here. For more ratings news on Gol Linhas Aereas Inteligentes click here.

Shares of Gol Linhas Aereas Inteligentes closed at $7.75 yesterday.

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