Grupo Aeromexico (NYSE:AERO) Upgraded to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Grupo Aeromexico from hold to buy, adding to a mixed but generally positive analyst backdrop for the stock.
• Analyst sentiment remains split: while Goldman Sachs upgraded the shares and the consensus rating is Moderate Buy, other firms like Weiss Ratings and Zacks recently issued sell-oriented downgrades.
• Grupo Aeromexico reported strong quarterly results, including revenue of $1.34 billion that beat estimates, and the stock was trading at $16.30 with a market cap of about $2.22 billion.

Grupo Aeromexico (NYSE:AERO - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Monday.

Several other brokerages have also recently issued reports on AERO. Weiss Ratings cut Grupo Aeromexico from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, May 4th. Barclays dropped their target price on Grupo Aeromexico from $32.00 to $25.00 and set an "overweight" rating for the company in a report on Tuesday, March 24th. The Goldman Sachs Group upgraded Grupo Aeromexico to a "strong-buy" rating in a report on Monday, April 13th. JPMorgan Chase & Co. dropped their target price on Grupo Aeromexico from $28.50 to $28.00 and set an "overweight" rating for the company in a report on Thursday, March 12th. Finally, Zacks Research cut Grupo Aeromexico from a "hold" rating to a "strong sell" rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $29.43.

Grupo Aeromexico Price Performance

Shares of NYSE:AERO opened at $16.30 on Monday. Grupo Aeromexico has a 12-month low of $12.26 and a 12-month high of $23.05. The firm has a market capitalization of $2.22 billion and a P/E ratio of 19.88. The firm has a 50 day moving average of $15.30.

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

Institutional Investors Weigh In On Grupo Aeromexico

A number of hedge funds have recently bought and sold shares of AERO. Par Capital Management Inc. acquired a new stake in shares of Grupo Aeromexico during the 4th quarter worth about $304,155,000. Silver Point Capital L.P. acquired a new stake in shares of Grupo Aeromexico during the 4th quarter worth about $289,274,000. Strategic Value Partners LLC acquired a new stake in shares of Grupo Aeromexico during the 4th quarter worth about $208,318,000. Nut Tree Capital Management LP acquired a new stake in shares of Grupo Aeromexico during the 4th quarter worth about $130,652,000. Finally, Baupost Group LLC MA acquired a new stake in shares of Grupo Aeromexico during the 4th quarter worth about $106,620,000.

About Grupo Aeromexico

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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