Zacks Research Downgrades LATAM Airlines Group (NYSE:LTM) to Hold

Key Points

• Zacks Research downgraded LATAM Airlines Group (NYSE:LTM) from a "strong-buy" to a "hold" in a note to investors on Tuesday.
• Analyst sentiment is mixed but leans neutral: one Buy and four Hold ratings produce an average rating of "Hold" with an average target price of $68.70 and individual targets ranging roughly $64–$75.
• LATAM recently beat expectations—reporting $1.69 EPS vs. $1.35 expected and $3.95B revenue vs. $3.81B—and trades at a PE of about 10.1 with a market cap near $15.2B, though the share price (~$50.41) sits well below the 50‑day average ($58.81).

LATAM Airlines Group (NYSE:LTM - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Tuesday,Zacks.com reports.

LTM has been the topic of several other reports. The Goldman Sachs Group set a $64.10 target price on LATAM Airlines Group and gave the company a "neutral" rating in a research note on Thursday, February 12th. Wall Street Zen raised LATAM Airlines Group from a "buy" rating to a "strong-buy" rating in a report on Saturday, November 22nd. Barclays reaffirmed an "overweight" rating and set a $75.00 price objective (up from $60.00) on shares of LATAM Airlines Group in a research report on Thursday, February 5th. Weiss Ratings reiterated a "hold (c)" rating on shares of LATAM Airlines Group in a report on Thursday, January 22nd. Finally, Morgan Stanley reissued an "equal weight" rating and issued a $67.00 target price (up from $56.00) on shares of LATAM Airlines Group in a research report on Friday, February 20th. One research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $68.70.

LATAM Airlines Group Stock Performance

Shares of NYSE LTM opened at $50.41 on Tuesday. The firm's 50 day moving average price is $58.81 and its 200-day moving average price is $51.56. The company has a market cap of $15.23 billion, a PE ratio of 10.12, a P/E/G ratio of 0.34 and a beta of 3.89. LATAM Airlines Group has a 52-week low of $26.36 and a 52-week high of $70.42.

LATAM Airlines Group (NYSE:LTM - Get Free Report) last posted its quarterly earnings results on Tuesday, February 3rd. The transportation company reported $1.69 EPS for the quarter, beating analysts' consensus estimates of $1.35 by $0.34. LATAM Airlines Group had a net margin of 10.07% and a return on equity of 136.61%. The firm had revenue of $3.95 billion for the quarter, compared to analysts' expectations of $3.81 billion. On average, analysts forecast that LATAM Airlines Group will post 3.37 earnings per share for the current fiscal year.

Hedge Funds Weigh In On LATAM Airlines Group

Several hedge funds and other institutional investors have recently modified their holdings of the company. AQR Capital Management LLC purchased a new position in shares of LATAM Airlines Group in the 1st quarter worth $3,061,000. Goldman Sachs Group Inc. increased its position in LATAM Airlines Group by 133.9% during the first quarter. Goldman Sachs Group Inc. now owns 40,258 shares of the transportation company's stock valued at $1,259,000 after acquiring an additional 23,044 shares during the last quarter. Rhumbline Advisers lifted its holdings in LATAM Airlines Group by 113.8% in the first quarter. Rhumbline Advisers now owns 3,194 shares of the transportation company's stock valued at $100,000 after acquiring an additional 1,700 shares during the period. SG Americas Securities LLC bought a new position in LATAM Airlines Group in the second quarter valued at about $595,000. Finally, Raiffeisen Bank International AG purchased a new position in LATAM Airlines Group in the second quarter worth about $185,000.

LATAM Airlines Group Company Profile

LATAM Airlines Group SA is a Chilean-based airline holding company formed in 2012 through the merger of LAN Airlines of Chile and TAM Linhas Aéreas of Brazil. The Group offers passenger and cargo air transportation services across South America and beyond, operating under a multi‐brand strategy that encompasses several nationally recognized carriers. Headquartered in Santiago, Chile, LATAM is structured to serve diverse market segments with full-service, premium and low‐cost offerings.

The core business activities of LATAM Airlines Group include scheduled domestic and international passenger flights, air cargo services and maintenance, repair and overhaul (MRO) capabilities through its technical divisions.

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