Azul downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs analyst Bruno Amorim downgraded Azul to Neutral from Buy with a price target of $4, down from $6.70. The firm acknowledges that Azul’s operations are healthy, as is evidenced by the company’s EBITDA margins back to pre-pandemic levels, despite a 31% depreciation of the BRL vs 2019. However, the recent BRL depreciation has led to a significant increase in net debt for the company versus pre-pandemic levels which, coupled with a worsening macroeconomic environment is likely to limit room for a potential stock re-rating, Goldman argues.