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Gol Linhas Aereas Inteligentes SA (NYSE:GOL) was upgraded by stock analysts at Morgan Stanley from an “equal weight” rating to an “overweight” rating in a report issued on Thursday. The firm currently has a $8.20 target price on the stock, up from their previous target price of $7.00. Morgan Stanley’s price target would indicate a potential upside of 22.39% from the company’s current price.

The analysts wrote, “We expect strong 2H14e (8.0% EBIT margin) and 2015e (9.0% EBIT margin). With weak numbers since 2011, we now see GOL’s EBIT margin back to a high-single-digit level of 9.0% next year on a combination of (1) capacity discipline with available seat kilometers (ASK) up only 1% y/y, (2) higher yield/load factor gains, and (3) stable costs without Brazilian real or fuel pressures. In our view, investors should buy GOL to benefit from margin expansion, positive FCF, and earnings in 2015e.”

Shares of Gol Linhas Aereas Inteligentes SA (NYSE:GOL) traded up 4.93% during mid-day trading on Thursday, hitting $7.03. 940,647 shares of the company’s stock traded hands. Gol Linhas Aereas Inteligentes SA has a 52 week low of $3.77 and a 52 week high of $6.94. The stock has a 50-day moving average of $6.13 and a 200-day moving average of $5.65. The company’s market cap is $1.945 billion.

Gol Linhas Aereas Inteligentes SA (NYSE:GOL) last posted its quarterly earnings results on Friday, August 15th. The company reported ($0.27) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by $0.24. Analysts expect that Gol Linhas Aereas Inteligentes SA will post $-0.16 EPS for the current fiscal year.

A number of other analysts have also recently weighed in on GOL. Analysts at Raymond James downgraded shares of Gol Linhas Aereas Inteligentes SA from an “outperform” rating to a “market perform” rating in a research note on Tuesday, July 29th. Separately, analysts at Bank of America upgraded shares of Gol Linhas Aereas Inteligentes SA from a “neutral” rating to a “buy” rating in a research note on Monday, July 21st. They now have a $8.00 price target on the stock.

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.

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