Back to top

Bull of the Day

We upgrade our rating on TAM S.A. (TAM) from Neutral to Outperform based on the proposed merger of LAN Airlines S.A. and TAM, to be christened LATAM with the total expected synergies of US$400 million. The merger, which is expected to close by the middle of fiscal 2011 will make LATAM a strong competitor in the domestic market.

The company also reported decent numbers in the third quarter with EPADS of $1.14, much above the Zacks Consensus Estimate of $0.45. Moreover, the recovery in market conditions and particularly the emerging economies like Latin America including a fall in fuel price compared with 2008 level is encouraging.

The International Air Transport Association (IATA) expects the airline industry to make a profit of $9.1 billion in 2011. Our target price of $28.00 is derived from the P/E ratio of 24.8x 2011 EPS.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
CLAYTON WIL… CWEI 117.30 +1.78%