Latam Airlines reinstated with a Neutral at Citi

Citi reinstated coverage of Latam Airlines with a Neutral rating and $26.50 price target. The carrier has achieved “some impressive improvements” on its operations and on the balance sheet, but against this positive backdrop, it seems hard to argue that Latam should trade at a valuation premium to Copa, the analyst tells investors in a research note. Moreover, the late-November expiration of a lock-up agreement puts short-term overhang risk on the shares, adds Citi.