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    TAM S.A.'s preferred stock achieved its target price on July 2, 2008 due to investor concerns over spiraling crude oil prices and the company's inability to pass these increased costs to customers. While current price levels support a HOLD rating, analysts expect to revise estimates downward in their next report due to escalating oil prices. The ADR is also rated a HOLD although estimates may be revised down. Both ratings will be reassessed in the next update report.

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    Company News Alert

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    TAM NewsAlert 03July2008 1

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    TAM S.A.'s preferred stock achieved its target price on July 2, 2008 due to investor concerns over spiraling crude oil prices and the company's inability to pass these increased costs to customers. While current price levels support a HOLD rating, analysts expect to revise estimates downward in their next report due to escalating oil prices. The ADR is also rated a HOLD although estimates may be revised down. Both ratings will be reassessed in the next update report.

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    4 views1 page

    TAM NewsAlert 03july2008 1

    Uploaded by

    ResearchOracle
    TAM S.A.'s preferred stock achieved its target price on July 2, 2008 due to investor concerns over spiraling crude oil prices and the company's inability to pass these increased costs to customers. While current price levels support a HOLD rating, analysts expect to revise estimates downward in their next report due to escalating oil prices. The ADR is also rated a HOLD although estimates may be revised down. Both ratings will be reassessed in the next update report.

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    of 1

    Tel.

    +44 (0)20 7232 3090 Traded on


    AIM, London
    Fax +44 (0)20 7232 3099 Stock Exchange

    www.iirgroup.com Regulated and


    LSE: IIR authorised by

    TAM S.A. 03 July 2008

    Company news alert

    Preferred stock target price achieved on 02 July 2008

    Preferred SELL TAM S.A.’s (TAM) preferred stock achieved its target price on 02 July 2008 given investor concerns
    Direct
    over access
    spiraling to prices
    crude oil the full report
    and the freeinability
    company’s of charge
    to passatthese costs onto its customers.
    Stock http://www.iirgroup.com/researchoracle/viewreport/show/20178
    Although the current preferred stock price levels support a HOLD, we do not anticipate a change in our
    current rating as we expect to revise our estimates downwards in our next update report to account for
    Ticker: TAMM4.SA escalating crude oil prices.

    Target price: BRL27.75


    Current price: BRL27.00
    Price change since We will reassess the preferred stock in our next update report.
    (15.8%)
    last report

    ADR HOLD Although current levels support a BUY rating and despite our anticipation of a significant positive
    currency impact over the medium term, we do not anticipate a change in our ADR rating as we expect
    to revise our estimates downwards in our next update report.
    Ticker: TAM
    Target price: US$21.35
    US$16.89
    Current price:
    Price change since We will reassess the ADR (1 ADR = 1 preferred share) in our next update report.
    (16.1%)
    last report

    Analyst: Mayuresh Kelkar Investment horizon – short term actionable trading strategies
    Editor: Matthew Bridle This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months. If
    Global Research Director: this report is provided to you by your broker under the Global Settlement, you may now also access (free of
    Satish Betadpur, CFA charge) the short term trading outlook that we publish from time to time for this issuer, looking at the coming
    5-30 days for readers with a shorter trading horizon. These are available on-line only at
    Next news due: www.researchoracle.com.
    2Q 08 results, August 2008

    We rated the TAM preferred stock a SELL in 1Q 08 update report, dated 23 June 2008, with a 6-12
    month target price of BRL27.75 per share representing a potential downside of approximately 13%.
    The TAM preferred stock achieved our target price, closing at BRL27.00 on 02 July 2008. We believe
    the decline is attributable to investor concerns over the impact of rising crude oil prices. Since our 1Q
    08 update report, crude oil price increased 8.6% to US$143.57 per barrel and Brazil’s Bovespa index
    has declined approximately 14.5%, from 71,451.8 points on 23 June 2008 to 61,106.2 points on 03
    July 2008.

    Page 1

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