Grupo Aeromexico initiated with a Buy at Deutsche Bank

Deutsche Bank initiated coverage of Grupo Aeromexico (AERO) with a Buy rating and $25 price target The firm says the company is Mexico’s most profitable and only full service airline with a leading share in the majority of its key markets. Aeromexico has strong free cash flow generation supported by low costs, diversified revenues, and a restructured balance sheet, the analyst tells investors in a research note. Deutsche sees “significant” growth potential across all of the company’s major operating segments including air, loyalty, and other ancillaries.