TAM: poised for international growth

摘要

After LAN and Gol, which will be the next Latin American airline to rise to international prominence? TAM, Brazil's largest domestic airline, which has started earning strong profits, is poised to grow internationally and is planning to list its shares on the New York Stock Exchange (NYSE) in 2006. In recent months at least two major international banks have initiated coverage of TAM, which is currently listed on the Bovespa (Sao Paulo stock exchange). UBS, which was an underwriter on TAM's R$548m (US$249m) Brazilian equity offering in June, initiated coverage of the company in August, saying that it offers a "compelling combination of near-term earnings momentum and long-term earnings growth". Calyon Securities' US airline analyst Ray Neidl initiated coverage of TAM in late October as part of his Brazilian expansion (which also included Gol and Embraer). He described TAM as a "formidable player in the high-growth market in Brazil", noting that the stock is attractive on both value and growth basis.