Ahead of the Bell: GOL Linhas Aereas upgraded

A JPMorgan analyst upgraded shares of Brazilian airline holding company GOL Linhas Aereas Inteligentes SA to "Overweight" on Friday, suggesting the stock is undervalued since oil has pulled back over the last several months.

Analyst Jaime Baker, who had previously rated shares "Underweight," noted that GOL shares have lost 6 percent since crude hit a record in mid-July. Its peers have rallied overall, Baker noted.

Baker also predicts the company will potentially return to profitability in 2009, and suggests investors buy up shares in anticipation of a stock recovery.

The analyst noted that while the company's "execution has disappointed us in recent years, we suspect this may change soon." Baker forecasts the company will beat analysts' average expectations in the second quarter.

GOL Linhas Aereas is the parent company of Brazilian airlines GOL Transportes Aereos SA and VRG Linhas Aereas SA.

GOL shares, which have traded between $7.51 and $28.16 in the past year, closed Thursday at $8.06. Baker did not provide a 12-month price target.