Deutsche Bank Downgrades TAM SA (TAM) to Hold; Mar Q Margins Under Pressure Due to Rising Energy Prices

Deutsche Bank downgraded TAM SA (NYSE: TAM) from Buy to Hold, price target lowered from $35 to $27.

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. The biggest driver behind the decline continues to be higher fuel expense, which we estimate will increase by $440 million (+25%) year-over-year...For TAM, we are forecasting a loss per ADS of $0.35 (vs. consensus EPADS of $0.30) compared to EPADS of $0.45 previously."

For an analyst ratings summary and ratings history on TAM SA click here. For more ratings news on TAM SA click here.

Shares of TAM SA closed at $24.23 yesterday.

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