Azul price target lowered to R$2 from R$5.80 at BofA

BofA lowered the firm’s price target on Azul (AZUL) to R$2 from R$5.80 and keeps an Underperform rating on the shares. Azul is working on a capital structure restructuring that includes new debt, the conversion of debt into equity, and the issuance of new equity, notes the firm, which estimates 85% dilution to shareholders, assuming Azul’s shares remain stable.