SÃO PAULO — Gol Linhas Aéreas Inteligentes SA’s shares jumped 14% Tuesday after Citigroup analysts reiterated their buy recommendation for the Brazilian airline.
Shares reached 6.92 reais, the equivalent of $1.38, and are down 17% from the end of last year through Monday’s close. Brazil’s benchmark Ibovespa stocks index was up 3.6% in mid-afternoon trading.
Citigroup said in a research note that Gol seems set for better operational results this year, including stronger passenger yields, better year-on-year operational cash flow generation, and solid unit revenue.
Gol is controlled by a holding company that also owns Colombia’s Avianca airline. A clearer picture of the holding company’s final operational structure could also help Gol’s share price, Citigroup said.