Gol Linhas Aereas Inteligentes S.A. (NYSE:GOL) was downgraded by Zacks Investment Research from a "buy" rating to a "hold" rating in a report issued on Tuesday, August 29th.
According to Zacks, "Shares of GOL Linhas have outperformed its industry in the last six months. Ushering in further good news, the company reported better-than-expected results in the second quarter of 2017. Moreover, the top line improved significantly year over year. The carrier’s view for full-year 2017 is also encouraging.
An improving Latin American economy is also aiding GOL Linhas. We expect the company"™s focus on capacity discipline to result in increasing yields, going forward. However, the carrier’s earnings per share declined significantly in the second quarter due to higher expenses on aircraft fuel. Moreover, total volume of departures fell 5.1%, while total number of seats available declined 4.1% in the quarter. GOL is also highly dependent on the products of certain big suppliers and operates in a competitive Latin American airline space»…
