Grupo Aeromexico (NYSE:AERO) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Grupo Aeromexico from “hold” to “strong sell”, adding to a mixed set of analyst opinions on the stock.
• Despite the downgrade, the broader analyst consensus remains “Moderate Buy”, with an average target price of $29.43 versus the stock’s recent price of $16.30.
• The company recently reported quarterly results that beat revenue expectations, posting $1.34 billion in revenue, though it also showed a negative return on equity of 41.04%.

Grupo Aeromexico (NYSE:AERO - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

Several other brokerages have also recently commented on AERO. The Goldman Sachs Group upgraded Grupo Aeromexico to a "strong-buy" rating in a report on Monday, April 13th. Barclays reduced their target price on Grupo Aeromexico from $32.00 to $25.00 and set an "overweight" rating on the stock in a report on Tuesday, March 24th. Weiss Ratings cut Grupo Aeromexico from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday. Wall Street Zen cut Grupo Aeromexico from a "buy" rating to a "hold" rating in a report on Sunday, May 3rd. Finally, JPMorgan Chase & Co. reduced their target price on Grupo Aeromexico from $28.50 to $28.00 and set an "overweight" rating on the stock in a report on Thursday, March 12th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have issued a Sell rating to the company. According to data from MarketBeat, Grupo Aeromexico has a consensus rating of "Moderate Buy" and an average target price of $29.43.

Grupo Aeromexico Price Performance

Grupo Aeromexico stock opened at $16.30 on Thursday. The firm has a 50 day moving average price of $15.30. Grupo Aeromexico has a 1 year low of $12.26 and a 1 year high of $23.05. The firm has a market capitalization of $2.22 billion and a P/E ratio of 19.88.

Grupo Aeromexico (NYSE:AERO - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The company reported $999.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $998.93. Grupo Aeromexico had a negative return on equity of 41.04% and a net margin of 6.17%.The company had revenue of $1.34 billion during the quarter, compared to the consensus estimate of $1.31 billion. As a group, equities research analysts predict that Grupo Aeromexico will post 1.13 EPS for the current fiscal year.

Hedge Funds Weigh In On Grupo Aeromexico

A number of institutional investors and hedge funds have recently modified their holdings of the business. Par Capital Management Inc. bought a new position in shares of Grupo Aeromexico during the 4th quarter worth approximately $304,155,000. Silver Point Capital L.P. purchased a new stake in Grupo Aeromexico in the 4th quarter valued at $289,274,000. Strategic Value Partners LLC purchased a new stake in Grupo Aeromexico in the 4th quarter valued at $208,318,000. Nut Tree Capital Management LP purchased a new stake in Grupo Aeromexico in the 4th quarter valued at $130,652,000. Finally, Baupost Group LLC MA purchased a new stake in Grupo Aeromexico in the 4th quarter valued at $106,620,000.

Grupo Aeromexico Company Profile

Grupo Aeroméxico is the parent company of Aeroméxico, Mexico’s long-established flag carrier and commercial airline group. The company operates scheduled passenger and cargo services, with a network that connects domestic destinations across Mexico and international markets in the Americas, Europe and Asia. Grupo Aeroméxico’s operations include mainline services as well as regional flying through its regional affiliates, airport ground-handling and cargo divisions that support its commercial network.

The carrier deploys a mix of narrow-body and wide-body aircraft to serve short-, medium- and long-haul routes, using single-aisle jets for domestic and regional markets and wide-body equipment for transcontinental services.

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