TAM S.A. (NYSE:TAM) was downgraded by UBS AG from a “buy” rating to a “neutral” rating in a research note issued on Friday, TheFlyOnTheWall.com reports. They currently have a $24.00 target price on the stock, up from their previous target price of $21.00. UBS AG’s price target points to a potential upside of 10.52% from the stock’s previous close.
The analysts wrote, “Believe could eventually benefit from more liquidity (free float only ~$420 mil., 72% held by Apollo). Valuation full for now, at higher end of specialty chem. Also shifting $0.04 between 2Q13 & 4Q13 to better reflect seasonality of agricultural markets (TAM’s largest end applications). TAM is our last reporting firm (Aug 13), and does not provide guidance. Taminco is #1 globally in a niche known as alkyl amines, which are ingredients in a wide variety of products. There are no other public pure play producers. Competitors are typically either small divisions of large diversified firms like BASF and DuPont, or small private firms. Margins are relatively stable because raw mat’ls are passed through to customers relatively quickly (1-2 months). The largest end market is agricultural chemicals, at about 30% of sales. The animal nutrition market and personal care markets represent about 15% each.”
Shares of TAM S.A. (NYSE:TAM) traded down 5.15% during mid-day trading on Friday, hitting $21.75. TAM S.A. has a 52 week low of $13.75 and a 52 week high of $23.30. The stock’s 50-day moving average is currently $20.8. The company has a market cap of $1.419 billion and a P/E ratio of 48.48.
TAM has been the subject of a number of other recent research reports. Analysts at JPMorgan Cazenove initiated coverage on shares of TAM S.A. in a research note to investors on Tuesday, May 28th. They set a “market perform” rating on the stock. Separately, analysts at Deutsche Bank initiated coverage on shares of TAM S.A. in a research note to investors on Tuesday, May 28th. They set a “buy” rating and a $21.00 price target on the stock. Finally, analysts at Credit Suisse initiated coverage on shares of TAM S.A. in a research note to investors on Tuesday, May 28th. They set an “outperform” rating on the stock.
Three analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. TAM S.A. has a consensus rating of “Buy” and an average price target of $22.50.
TAM SA (NYSE:TAM) is a Brazil-based company engaged in providing scheduled air transportation in both the domestic and the international markets through the Company’s operating subsidiaries, TAM Linhas Aereas SA (TAM Linhas Aereas), Transportes Aereos Del Mercosur SA (TAM Mercosur) and Pantanal Linhas Aereas SA The Company offers flights throughout Brazil.
