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LATAM Airlines Group S.A. (LTM) Stock Analysis

SellVALUE-TRAP 1/5Moderate Confidence

Industrials · Airlines

Sell if holding. Momentum 2.2/10 is below the 5.0 floor at $46.25 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 4.4): -1.5; Sector modifier (Industrials): -0.7.

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Chile, Argentina, Peru, Colombia, Ecuador, Brazil, the United States, other Latin American countries, the Caribbean, Europe, and Oceania. As of December 31,... Read more

$46.25+32.3% A.UpsideScore 6.8/10#1 of 12 Airlines
QualityF-score6 / 9FCF yield9.95%
IncomeYield3.26%(5y avg 1.14%)Payout41.67%sustainable
Stop $43.74Target $61.17(analyst − 13%)A.R:R 3.7:1
Analyst target$70.31+52.0%9 analysts
$61.17our TP
$46.25price
$70.31mean
$80

Sell if holding. Momentum 2.2/10 is below the 5.0 floor at $46.25 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 4.4): -1.5; Sector modifier (Industrials): -0.7. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 6.8/10, moderate confidence.

Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 77d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: moderate.

Recent Developments — LATAM Airlines Group S.A.

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Strong earnings beat streak (4/4)
Attractive valuation
Strong growth profile
Risks
Sector modifier (Industrials): -0.7
Leverage penalty (D/E 4.4): -1.5
Negative momentum

Key Metrics

P/E (TTM)8.1
P/E (Fwd)7.0
Mkt Cap$13.8B
EV/EBITDA6982.0
Profit Mgn11.2%
ROE117.6%
Rev Growth21.9%
Beta0.82
Dividend3.26%
Rating analysts13

Quality Signals

Piotroski F6/9MoatNarrow

Options Flow

P/C2.25bearish
IV51%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker·2 ceiling hits

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Obv
1.0
Ma Position
2.2
Volume
3.4
Rsi
4.5
Volume distribution (falling OBV)Below 200-MA but MA still rising (+3.0%/30d) — pullback in uptrend, not confirmed weakness
GatesMomentum 2.2<4.5A.R:R 3.7 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 77d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
48 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $45.09Resistance $54.08

Price Targets

$44
$61
A.Upside+32.3%
A.R:R3.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Momentum score 2.2/10 — below 4.5 minimum

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-08-04 (77d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is LTM stock a buy right now?

Sell if holding. Momentum 2.2/10 is below the 5.0 floor at $46.25 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 4.4): -1.5; Sector modifier (Industrials): -0.7. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $43.74. Score 6.8/10, moderate confidence.

What is the LTM stock price target?

Take-profit target: $61.17 (+32.3% upside). Prior stop was $43.74. Stop-loss: $43.74.

What are the risks of investing in LTM?

Sector modifier (Industrials): -0.7; Leverage penalty (D/E 4.4): -1.5; Negative momentum.

Is LTM overvalued or undervalued?

LATAM Airlines Group S.A. trades at a P/E of 8.1 (forward 7.0). TrendMatrix value score: 9.6/10. Verdict: Sell.

What do analysts say about LTM?

13 analysts cover LTM with a consensus score of 4.0/5. Average price target: $70.

What does LATAM Airlines Group S.A. do?LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in...

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Chile, Argentina, Peru, Colombia, Ecuador, Brazil, the United States, other Latin American countries, the Caribbean, Europe, and Oceania. As of December 31, 2024, the company provides passenger transport services to 160 destinations in 27 countries; and operated 371 fleet of aircraft. The company was formerly known as LAN Airlines S.A. and changed its name to LATAM Airlines Group S.A. in June 2012. LATAM Airlines Group S.A. was founded in 1929 and is headquartered in Santiago, Chile.

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