June 11 (Bloomberg) -- Gol Linhas Aereas Inteligentes SA, the second-biggest Brazilian airline, rose the most in a month after analysts at Raymond James Financial Inc. recommended buying the shares because of lower fuel prices.
Gol advanced 3 percent to 8.16 reais at the close in Sao Paulo, the most since May 5. The benchmark Bovespa index slid 0.8 percent.
“We are lowering our fuel price assumptions substantially, which causes our earnings estimate to move meaningfully higher, as fuel costs account for 38 percent of non-regional carriers’ total operating expenses on average,” Raymond James analysts James Parker, Savanthi Syth and Krisztina Katai wrote in a note to clients dated June 8. They raised their recommendation on the stock to the equivalent of buy from neutral.
Crude for June delivery dropped 1.7 percent today in New York, reversing an earlier gain of 3 percent.
Gol has lost 34 percent this year, while the Bovespa declined 4.9 percent in the same period.
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