JPMorgan analyst Guilherme Mendes downgraded Azul (AZUL) to Underweight from Neutral after the company announced that it is filing for Chapter 11 in the U.S. Bankruptcy Court. This “comes as no major surprise” as local newspapers have been reporting that Azul was exploring various strategies to manage its liabilities, including the possibility of filing for bankruptcy, notes the firm, which believes Azul will likely experience significant equity dilution as the company navigates the Chapter 11 process.
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