Gol Linhas Aereas Inteligentes SA (GOLL4), the second-biggest Brazilian airline, headed for the steepest gain in three weeks after analysts at Raymond James Financial Inc. recommended buying the shares because of lower fuel prices.
Gol advanced 2.3 percent to 8.10 reais at 1:43 p.m. in Sao Paulo, the most on a closing basis since May 18. It was the fifth-best performer on the benchmark Bovespa index, which rose 0.3 percent.
“We are lowering our fuel price assumptions substantially, which causes our earnings estimate to move meaningfully higher, as fuel costs account for 38 percent of non-regional carriers’ total operating expenses on average,” Raymond James analysts James Parker, Savanthi Syth and Krisztina Katai wrote in a note to clients dated June 8. They raised their recommendation on the stock to the equivalent of buy from neutral.
Gol has lost 35 percent this year, while the Bovespa declined 3.8 percent in the same period.
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