Bradesco BBI and Agora Analysts Investments downgraded Blue for Neutral (Image: ISTOCK/MIGLAGOA)
THE BRADESCO BBI relegated the recommendation for the Blue (Blue4) buy to neutralin view of the risk of additional restructuring amid delayed funding with government support. The target price is $ 1.30.
The analysts André Ferreira, from BBI, and Wellington Lourenço, from Agora Investmentsthere are also news about negotiations with creditors for financing that supports the air in a potential process of judicial recovery in the United States (Chapter 11).
“The offer of shares to transform US $ 275 million (R $ 1.6 billion) of grades due to 2029/30 into actions practically did not have subscription or external participation, preventing Blue from transforming another US $ 100 million into notes,” recall analysts.
Aggravating the scenario, the results reported by Azul in the first quarter of 2025 were weaker than expected, with Ebitda (profit before interest, taxes, depreciation and amortization) 2% below the previous year, impacted by the 18% devaluation of the real and operational challenges.
This resulted in a cash burning of R $ 313 million in operations and led Azul to end the period with a cash position of R $ 655 million, 49% lower than the previous quarter.
“In our view, cash flow by the end of the year is restricted – which would give Blue liquidity would be if the government offered $ 2 billion to be used as a guarantee for new debts, which could happen in the first half of 2025, but this has been repeatedly postponed in recent months,” they evaluate.
In this scenario, the BBI and Agora reviewed estimates for 2025, waiting for an EBITDA of R $ 7.1 billion, in line with consensus.
What is happening to Azul?
The ghost of a Chapter 11 It’s haunting blue.
The action faced a strong fall after the Risk Agency S&P cut the CCC+ rating to CCC-. According to S&P, the Brazilian air has a “high risk of default”. The perspective is negative and the company is only two steps above D, which means default (default).
According to information from Economic valueBlue negotiates approximately $ 600 million in creditors financing to support possible Chapter 11 request.
The operation can be announced this week, according to Bloomberg, which heard sources familiar with the situation.
THE Bluehowever, denied on Friday (24) the formalization of an instrument on any transaction or financial strategy.
“Azul is still committed to strengthening its capital structure and which has been conducting, within its strategic long -term value creation agenda, in a recurring and diligent manner, together with its main stakeholders,” said the document sent to the market.
Only in the accumulated last month, blue4 accumulates drop exceeding 46%.
Source: Moneytimes
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