JBLU - Azul: Preparing For Takeoff

2024-06-14 04:18:11 ET

Summary

• Azul presented good operational trends in its 1Q24 results. It is worth remembering that the airline sector was the most affected by the pandemic and has not yet fully recovered.
• Another highlight of 1Q24 was the codeshare agreement with competitor GOL, and in my view, this agreement will enhance the company's business model.
• The valuation shows a 15% discount for Azul compared to its peers when we use the comparative analysis method with the EV/EBITDA multiple.

Investment Thesis

I recommend buying Azul ( AZUL ) shares. The company has a different strategy than its competitors in Brazil, and I see strong signs that this strategy will have an important catalyst....

For further details see: