Deutsche Bank Upgrades LATAM (LFL) to Buy

Deutsche Bank upgraded LATAM (NYSE: LFL) from Hold to Buy with a price target of $11.00 (from $7.00).

Analyst Michael Linenberg said, "We are taking a more constructive stance toward the sector as evidenced by our upward rating revisions of the following names: LFL & SMLE3 to Buy from Hold, CPA & GOL to Hold from Sell. Underlying our upgrades: 1) we are of the view that we have seen or are seeing the trough of Latam economies (save for Venezuela); 2) this improvement has been accompanied by the appreciation of several of the region’s key currencies such as the BRL which is an overall positive for the region’s airlines; 3) significant capacity cuts are likely to drive RASM/PRASM higher, at least in local currencies; and 4) transportation stocks including airlines tend to outperform early cycle."

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

Shares of LATAM closed at $8.92 yesterday.

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