Deutsche Bank Downgrades LAN Airlines (LFL) to Hold; Mar Qtr Margins Under Pressure Due to Rising Energy Prices

Deutsche Bank downgraded LAN Airlines (NYSE: LFL) from Buy to Hold, price target cut from $32 to $24.

Analyst, Michael Linenberg, said, "We are projecting a Mar Q 2012 net profit of $90 million for the five Latin American airlines under coverage, a drop of $225 million compared to last year's net profit of $315 million..."

"For LAN, our revised EPADR estimate is $0.20 (vs. consensus of $0.32), which compares to $0.35 previously. We are also lowering our earnings per ADS/share estimates for GOL (from $0.01 to a loss of $0.10 vs. the consensus loss of $0.13) and Aeromexico (from Ps$0.45 to Ps$0.28 vs. consensus of Ps$0.24)."

For an analyst ratings summary and ratings history on LAN Airlines click here. For more ratings news on LAN Airlines click here.

Shares of LAN Airlines closed at $28.17 yesterday.

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