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

SellVALUE-TRAP 1/5Moderate Confidence

Industrials · Airlines

Earnings in 5 days (2026-05-05). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. Momentum 1.6/10 is below the 5.0 floor at $46.91 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 6.0): -1.5; Earnings in 5 days (event risk).

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

$46.91+30.1% A.UpsideScore 6.6/10#1 of 12 Airlines
Stop $45.29Target $61.05(analyst − 13%)A.R:R 3.7:1
Analyst target$70.18+49.6%9 analysts
$61.05our TP
$46.91price
$70.18mean
$80

Sell if holding. Momentum 1.6/10 is below the 5.0 floor at $46.91 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 6.0): -1.5; Earnings in 5 days (event risk). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 6.6/10, moderate confidence.

Passes 5/7 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and earnings proximity 5d<=7d. Suitability: moderate.

Thesis

Rewards
Strong earnings beat streak (4/4)
Attractive valuation
Strong growth profile
Risks
Leverage penalty (D/E 6.0): -1.5
Earnings in 5 days (event risk)
Negative momentum

Key Metrics

P/E (TTM)9.5
P/E (Fwd)6.9
Mkt Cap$13.7B
EV/EBITDA7575.9
Profit Mgn10.2%
ROE142.9%
Rev Growth16.1%
Beta0.99
Dividend3.27%
Rating analysts13

Quality Signals

Piotroski F6/9

Options Flow

P/C0.29bullish
IV70%elevated
Max Pain$40-14.7% vs spot

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·1 ceiling hit

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
Volume
1.8
Ma Position
2.2
Rsi
3.0
Capitulation risk (RSI 29, below 200MA)Volume distribution (falling OBV)Below 200-MA but MA still rising (+3.6%/30d) — pullback in uptrend, not confirmed weakness
GatesMomentum 1.6<4.5EARNINGS PROXIMITY 5d<=7dA.R:R 3.7 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARSuitability: Moderate
RSI
29 · Oversold
20D MA 50D MA 200D MAGOLDEN CROSSSupport $46.69Resistance $57.18

Price Targets

$45
$61
A.Upside+30.1%
A.R:R3.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Momentum score 1.6/10 — below 4.5 minimum
! EARNINGS_PROXIMITY:5d<=7d

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-05-05 (5d)

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 1.6/10 is below the 5.0 floor at $46.91 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 6.0): -1.5; Earnings in 5 days (event risk). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $45.29. Score 6.6/10, moderate confidence.

What is the LTM stock price target?

Take-profit target: $61.05 (+30.1% upside). Prior stop was $45.29. Stop-loss: $45.29.

What are the risks of investing in LTM?

Leverage penalty (D/E 6.0): -1.5; Earnings in 5 days (event risk); Negative momentum.

Is LTM overvalued or undervalued?

LATAM Airlines Group S.A. trades at a P/E of 9.5 (forward 6.9). TrendMatrix value score: 9.5/10. Verdict: Sell.

What do analysts say about LTM?

13 analysts cover LTM with a consensus score of 3.9/5. 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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