Share on StockTwits
 

Analysts at Imperial Capital began coverage on shares of Gol Linhas Aereas Inteligentes SA (NYSE: GOL) in a research report issued to clients and investors on Monday, TheFlyOnTheWall.com reports. The firm set an “outperform” rating and a $6.00 price target on the stock. Imperial Capital’s target price would indicate a potential upside of 79.10% from the stock’s previous close.

The analysts wrote, “Gol is executing its turnaround plan and delivering initial improved results, but this is not reflected in GOL shares. GOL shares seem extremely attractive as investors have yet to appreciate what Gol is doing. Investors are also concerned about the Brazilian public protests and the weaker Real. Most importantly, we believe investors are failing to appreciate the proven positive economic impact of airline capacity reductions. In mid-2012, GOL named a new CEO, Paolo Kakinoff, who has focused on changes should move the company back to profitability, in our view. Included in the changes thus far are the closing of its unprofitable Webjet subsidiary, the elimination of the 21 fuel inefficient B737-300 aircraft, headcount reductions totaling almost 2,000, and capacity reductions that began in mid-2012. As part of this overall effort, Gol has focused its efforts on moving its average fares up, no longer relying on fare cutting as a traffic generating tool.”

Shares of Gol Linhas Aereas Inteligentes SA (NYSE: GOL) traded down 2.39% during mid-day trading on Monday, hitting $3.27. Gol Linhas Aereas Inteligentes SA has a one year low of $3.01 and a one year high of $7.67. The stock’s 50-day moving average is currently $4.46. The company’s market cap is $904.9 million.

A number of other firms have also recently commented on GOL. Analysts at Raymond James cut their price target on shares of Gol Linhas Aereas Inteligentes SA from $7.50 to $6.00 in a research note to investors on Tuesday, June 18th. Separately, analysts at Goldman Sachs initiated coverage on shares of Gol Linhas Aereas Inteligentes SA in a research note to investors on Monday, June 3rd. They set a “neutral” rating and a GBX 5.60 ($0.09) price target on the stock. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Gol Linhas Aereas Inteligentes SA in a research note to investors on Wednesday, April 24th. They now have a $6.75 price target on the stock.

One analyst has rated the stock with a sell rating, two have assigned a hold rating and three have issued a buy rating to the stock. The company has a consensus rating of “Hold” and an average price target of $6.87.

Gol Linhas Aereas Inteligentes SA (NYSE: GOL) is a low-cost, low-fare airline in the world providing service on routes connecting all of Brazil’s cities and from Brazil to cities in South America and select touristic destinations in the Caribbean.

The Fly On The Wall

Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.