Latam Airlines initiated with Overweight rating, Top Pick call at Morgan Stanley

Morgan Stanley analyst Jens Spiess initiated coverage of Latam Airlines with an Overweight rating and Top Pick designation, along with a $40 price target. The company emerged stronger from its bankruptcy, with profitability that is above pre-pandemic levels and driven not only by favorable industry dynamics, but also by its leaner cost structure, the analyst tells investors in a research note. Latam Airlines shares continue to trade at a deep discount, but the company’s exposure to under-penetrated markets is supporting above average passenger growth over next five years, the firm added.