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Azul upgraded to Buy from Neutral at Seaport Research

Azul upgraded to Buy from Neutral at Seaport Research

Seaport Research upgraded Azul (AZUL) to Buy from Neutral with a $5 price target Azul and Abra Group, the majority investor of Gol and Avianca, reached a non-binding memorandum of understanding on a potential merger between Gol and Azul, the analyst tells investors in a research note. The firm says that while the combination is still a “work in progress,” the management teams came to an agreement on governance and social issues, the “thorniest parts of any merger negotiation.” Seaport says deal is not only necessary, but the economics for both airlines “are too compelling to pass up.” . As such, a more constructive outlook on Azul’s stock is justified, the firm contends.

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