Benzinga | Sep 13, 2021 03:54PM EDT

BofA Downgrades Azul To Underperform From Neutral

* BofA analyst Murilo Freiberger downgraded Azul SA (NYSE:AZUL) to Underperform from Neutral and changed the price target to $20.80 (implying an upside of 1.27%), up from $15.

* Freiberger states that Brazilian airlines have done an "impressive" job adjusting operations, negotiating liabilities, and sustaining liquidity during the COVID crisis, but there is limited upside from current valuation levels.

* Freiberger adds that the "COVID bill" can impact cash flows, and the company's existent liabilities could also be underestimated.

* Recently, Credit Suisse initiated coverage on the company with Outperform rating.

* Price Action: AZUL shares are trading higher by 2.47% at $20.52 on the last check Monday.