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What this page is: Delvantic's full research page for LATAM Airlines Group S.A. (LTM) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.
Our current read (analysis of 2026-08-27): Designation Watch · Gem Score +32 (−100…+100 Quality+Value blend) · Quality 44 · Value 24 · Sentiment -31 (timing only, not weighted) · Composite fair value $98.17 vs $51.48 at analysis
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LATAM Airlines Group S.A.
LTM NYSELATAM Airlines Group S.A. American Depositary Receipt (ADR) represents securities in LATAM Airlines Group S.A., which is one of the largest and most important airlines in Latin America. The ADR allows U.S. investors to purchase shares in the company without having to deal with foreign exchanges or currencies, as it is listed on the New York Stock Exchange. LATAM Airlines is headquartered in Santiago, Chile, and operates a vast network throughout Latin America, linking destinations in Chile, Brazil, Peru, Argentina, and across North America, the Caribbean, Europe, and Oceania. The airline offers both passenger and cargo services, which are crucial for trade and travel within and beyond Latin America. Its extensive network facilitates connectivity for business, tourism, and cultural exchanges, contributing significantly to economic links across continents. LATAM Airlines also plays a vital role in supporting the region's tourism sector, which is pivotal for many Latin American economies. As such, the ADR provides investors with exposure to the aviation sector and the broader economic activity in Latin America.
Price Overview
Price History (1 Year)
Revenue & Net Income Trend
LATAM Airlines Group S.A. is a foreign private issuer — it reports to the U.S. SEC once a year (on Form 20-F or 40-F) rather than filing the quarterly statements (10-Q) that U.S.-domiciled companies must submit. Our financial statements are read directly from SEC filings, so for this company only annual figures exist at the source.
This is a property of how the company files, not missing or broken data — its filing history shows 9 annual reports, the latest filed 2026-03-05, and no quarterly filings . The company may still publish quarterly results on its own investor-relations site.
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 4.95
Total Equity: $1.34B
Shares: 294,708,115
Total Debt: $0.00
Cash: $2.15B
EBITDA: $4.07B
Total Debt: $0.00
Cash: $2.15B
Revenue: $14.27B
Revenue: $14.27B
Revenue: $14.27B
Total Equity: $1.34B
Tax Rate: 9.6%
Equity: $1.34B
Total Debt: $0.00
Cash: $2.15B
Current Liabilities: $7.29B
Long-Term Debt: $0.00
Total Debt: $0.00
Total Equity: $1.34B
Shares: 294,708,115
Shares: 294,708,115
CapEx: -$1.78B
Shares: 294,708,115
Stock Price: $52.26
Net Income: $1.46B
Industry Benchmarks
Income Statement (Annual)
Last updated: Aug 15, 2026 2:17pm (53d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.9B | $9.4B | $11.6B | $12.8B | $14.3B |
| Cost of Revenue | $5.0B | $8.1B | $8.8B | $9.6B | $10.1B |
| Gross Profit | -$79.5M | $1.3B | $2.8B | $3.3B | $4.2B |
| Operating Expenses | $3.3B | $47.5M | $1.7B | $1.7B | $1.8B |
| Operating Income | -$3.4B | $1.2B | $1.1B | $1.5B | $2.3B |
| Net Income | -$4.6B | $1.3B | $581.8M | $977.0M | $1.5B |
| EBITDA | -$2.3B | $2.4B | $2.3B | $3.0B | $4.1B |
| EPS | $-0.01 | $0.01 | $1.93 | $3.23 | $4.96 |
| EPS (Diluted) | $-0.01 | $0.01 | $1.93 | $3.23 | $4.95 |
Balance Sheet (Annual)
Last updated: Aug 15, 2026 10:29am (53d ago)| Metric | 2022 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $1.1B | $1.2B | $1.7B | $2.0B | $2.2B |
| Total Current Assets | — | $3.5B | $4.2B | $3.9B | $4.4B |
| Total Assets | — | $13.2B | $14.7B | $15.3B | $17.6B |
| Current Liabilities | — | $5.1B | $5.7B | $6.3B | $7.3B |
| Long-Term Debt | — | — | — | — | — |
| Total Liabilities | — | $13.2B | $14.2B | $14.5B | $16.3B |
| Total Equity | — | $30.7M | $438.3M | $711.3M | $1.3B |
| Retained Earnings | — | -$7.5B | $464.4M | $1.1B | $2.2B |
Cash Flow (Annual)
Last updated: Aug 15, 2026 10:30am (53d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | -$184.1M | $96.8M | $2.3B | $3.1B | $3.7B |
| Capital Expenditure | -$587.2M | -$780.5M | -$795.8M | -$1.3B | -$1.8B |
| Free Cash Flow | -$771.3M | -$683.7M | $1.5B | $1.8B | $2.0B |
| Acquisitions (net) | — | — | — | — | — |
| Net Debt Issued / (Repaid) | -$436.3M | -$8.1B | -$567.4M | -$2.3B | -$1.5B |
| Dividends Paid | — | $0 | $0 | -$174.8M | -$605.2M |
| Stock Buybacks | — | — | — | — | — |
| Net Change in Cash | — | $0 | $0 | $0 | $0 |
Growth Trends (YoY %)
Last updated: Aug 15, 2026 2:17pm (53d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +91.7% | +24.3% | +10.2% | +11.2% |
| Gross Profit Growth | +1,684.3% | +124.3% | +15.7% | +27.3% |
| Operating Income Growth | +135.4% | -11.0% | +42.9% | +51.6% |
| Net Income Growth | +128.8% | -56.6% | +67.9% | +49.4% |
| EBITDA Growth | +205.8% | -4.5% | +30.9% | +36.2% |
Dividend History (Last 20)
Last updated: Aug 15, 2026 10:31am (53d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-05-08 | $0.13 | — | — | — |
| 2025-04-14 | $1.01 | — | — | — |
Deep Analysis
Risk : Reward — upside vs downside from this company's own quarters
Computed 2026-08-22 17:02Narrative Economics
market-narrative step).
Growth Outlook
Analyzed 2026-08-22 17:18The question every valuation on this page silently assumes: is this company likely to grow? Judged forward — the business, its category, the world — against what's already printed.
Claude Reading
The raw numbers tell a genuinely impressive operational story: revenue compounded from $4.88B (2021) to $14.27B (2025), a ~31% CAGR off the COVID trough, with net income going from -$4.65B to +$1.46B and FCF at $1.96B on $1.78B capex. Operating margin expanded from negative to 16.4%, gross margin from -0.6% to 29.2%. On the current $15.07B market cap, that's ~7.7x earnings and ~7.7x FCF — cheap by any airline benchmark. ROE of 109% and P/B of 22,691x scream the same thing: book equity of $1.34B is a post-Chapter-11 artifact, not a meaningful denominator. The FMP metrics tagged as anomalies (P/E 20,783, EV/EBITDA 7,450) are simply wrong — likely stale share count from pre-emergence — and should be discarded entirely, not "used with caution."
Where I part ways with the synthesis: a $115 signal-adjusted fair value (+123%) is aggressive-to-absurd for an emerging-market airline three years out of bankruptcy. Airlines structurally trade at 5-8x earnings for good reason — cyclicality, fuel exposure, labor, FX, and the fact that "peak margins" in this industry mean-revert violently. Even generous math — say 8x $1.46B NI = $11.7B, or 7x $1.96B FCF = $13.7B — lands *below* the current $15B cap, not double it. The Market Forces signal (unsustainable cargo tailwinds, hidden operating leases, Brazil macro) is the more honest read than the DCF's straight-line extrapolation. The Thesis Evaluation's score of +1 (bull 85.6 vs bear 84.5) is probably closer to the truth than the synthesis's blowout undervalued call — those two models are contradicting each other, and the synthesis is the one out over its skis.
The contrarian argument the models underweight: the balance sheet disclosure here is incomplete in a suspicious way. Total debt is shown as "—" and debt-to-equity as 0, which is unbelievable for a Latin American airline that just exited Chapter 11 with a restructured cap stack. LATAM's actual net debt is meaningful (billions in aircraft financing and leases), and the equity story hinges entirely on whether deleveraging outpaces the next cyclical downturn. The Narrative layer nails this: "most upside flows to creditors" until debt materially shrinks. The current ratio of 0.60 confirms working capital tightness. Also worth noting: the "22% revenue CAGR" cited in Thesis Evaluation is 2021-anchored — a recovery artifact. The real steady-state growth rate is closer to the 11% recent YoY, and even that decelerates as capacity normalizes across LATAM peers (GOL restructured, Azul struggling, Avianca weakened but not gone). Fuel is currently benign; a $10/bbl jet fuel move erases hundreds of millions in operating income.
My verdict: undervalued, but nowhere near the synthesis's +123%. At ~8x earnings and 7.7x FCF with a genuine turnaround underway, oligopoly dynamics improving, and $1.96B in real cash generation, this deserves a modest premium to the current $51.48 — I'd anchor fair value around $65-72, roughly 9-10x normalized earnings assuming margins compress 200-300bps from here as capacity returns. That's ~25-40% upside, not 123%. I dissent from the synthesis magnitude but agree with direction. The Market Forces "neutral/fair value" and Thesis Evaluation's near-zero score are directionally right that the risk-reward is more balanced than the DCF suggests; the missing debt disclosure alone should knock a full turn off any multiple. Position sizing should reflect that this is an EM cyclical with hidden leverage, not a compounder — starter position at best, and I'd want a Q1 2026 print confirming margin durability before adding.
GPT Reading
What jumps out is that the raw operating recovery is real, but the valuation framing in the model stack is much less trustworthy than the underlying income and cash flow statement. Revenue has risen from $4.88B in 2021 to $14.27B in 2025, a near tripling in four years, while operating income swung from a -$3.43B loss to +$2.34B. That is not cosmetic. Gross margin improved to 29.2%, operating margin to 16.4%, and net margin to 10.2% in 2025, all stronger than 2024’s 12.0% operating margin and 7.6% net margin. Free cash flow of $1.96B on $14.27B of sales is exceptional for an airline, and operating cash flow of $3.74B versus capex of $1.78B suggests earnings are being converted into real cash, not just accounting gains. If I strip away the clearly broken canonical multiples, this looks like a post-restructuring carrier now producing returns far above what a distressed or merely surviving airline should.
The balance sheet is where the story gets trickier, and it is exactly why I do not buy the “fortress” language implied by some bullish takes. Equity is only $1.34B against a $15.07B market cap, which tells you the reported P/B is useless but also reminds you book value is thin. The current ratio is 0.60, which is normal-ish for airlines only if liquidity is genuinely robust and debt maturities are manageable; here we are missing total debt, which is a major omission for a capital-intensive airline. Given the narrative references to hidden lease obligations and a large debt burden, I would not assume the de-risking is complete just because cash is $2.15B. Still, the market cap is only about 7.7x trailing free cash flow and roughly 10.3x trailing net income using the 2025 numbers. For a company growing revenue 11.2% and earnings 49.4% most recently, that is not expensive unless you believe 2025 is close to peak economics.
That is the core question: are these earnings cyclical peak earnings? My read is yes, probably above mid-cycle, but not so inflated that the stock should be dismissed. Even if free cash flow normalized down from $1.96B to, say, $1.2B-$1.4B and net income from $1.46B to around $1.0B, today’s $15.07B equity value would still imply a mid-teens FCF multiple and about 15x earnings for a dominant regional airline that has plainly rebuilt profitability. That feels closer to fair-to-modestly-cheap than to a screaming bargain. The bullish DCF outputs pointing to $98-$115 strike me as too aggressive because they likely capitalize a year of unusually strong margins and under-penalize airline cyclicality, FX, fuel, labor, and lease-adjusted leverage. But the stock also does not screen as overvalued on the actual economic numbers we have. At $51.48, I think the market is giving partial credit for the turnaround while still discounting a meaningful drop in future margins.
The best argument against my tempered bullishness is straightforward: airlines do not deserve the benefit of extrapolation, and LATAM’s post-bankruptcy earnings power may be flattered by favorable cycle conditions. Revenue is up nicely, but the bigger driver of equity enthusiasm has been margin expansion, with operating income more than doubling from $1.08B in 2023 to $2.34B in 2025. If competition intensifies, fuel rises, currencies move against them, or labor gets repriced, a 16.4% operating margin can compress hard. With only $1.34B of equity on the balance sheet and a sub-1 current ratio, small changes in enterprise economics can produce large changes in equity value. The 2022 net income of $1.34B on only $9.36B of revenue already hints that bottom-line figures may include items that make simple trend reading dangerous. A sharp bear would say the market is right to capitalize this business cautiously because creditors, lessors, and the cycle can take most of the upside before common shareholders do.
What would change my mind is evidence that 2025 was either clearly sustainable or clearly a one-year high-water mark. If the next annual print can hold revenue growth near high single digits while keeping operating margin above 13% and free cash flow above $1.5B, then the stock is too cheap at $51 and I would move toward a fair value in the low-to-mid $60s, potentially higher if debt disclosure confirms real deleveraging. Conversely, if revenue growth slows materially and operating income falls back toward $1.4B-$1.6B with free cash flow under $1.0B, then the current price is already full and possibly rich for a Latin American airline with thin equity and macro exposure.
Grok Reading
The numbers describe a post-restructuring airline that has rebuilt real earnings power faster than the market is willing to pay for. Revenue climbed from $4.88B in the 2021 trough to $14.27B in 2025, a multi-year recovery that is still printing 11% year-over-year growth. More important than the top line is the margin path: gross margin reached 29.2%, operating margin 16.4%, and net margin 10.2%, producing $1.46B of net income and $1.96B of free cash flow against a $15.1B equity market cap. That is roughly a 13% FCF yield and an effective mid-teens free-cash-flow multiple if you ignore the garbage canonical ratios (P/E of 20,783 and EV/EBITDA of 7,450 are unit artifacts, not economics). Operating cash flow of $3.74B funded $1.78B of capex and still left nearly $2B of surplus cash generation while the company holds $2.15B of cash. The equity base remains thin at $1.34B, which is why ROE prints above 100%—this is leverage of a cleaned-up capital structure, not a fortress fortress—but the cash conversion is unambiguous.
What stands out is how little of that cash generation is reflected in the price. At $51.48 the stock is capitalizing a business that just delivered mid-teens operating margins and double-digit FCF growth as if the recovery is already over or about to reverse. Revenue CAGR of roughly 11% and earnings CAGR above 50% over the visible recovery window are not being given any growth credit; the reverse-DCF skepticism embedded in the prior models (implying outright FCF decline) looks disconnected from the latest $14.27B revenue and $2.34B operating profit run-rate. The balance-sheet presentation is incomplete—total debt is blanked and debt-to-equity shows zero—yet the cash-flow statement does not look like a company drowning in interest. This is a classic post-bankruptcy equity where the operational turnaround has outrun the residual stigma and the residual lease/financing opacity.
The strongest counter-case is straightforward and data-backed. Airline margins at 16% operating are historically late-cycle; capacity is returning across Latin America, cargo tailwinds that helped the early recovery are normalizing, and the business remains a pure play on Brazilian and regional FX plus jet fuel. Current ratio of 0.60 signals tight liquidity optics even with $2.15B cash, and the $1.34B book equity means any re-leveraging or large lease reclassification can wipe the equity cushion quickly. The near-even bull/bear mass in the thesis score (85.6 vs 84.5) is not noise—it correctly flags that a fuel spike, a Brazil slowdown, or labor cost catch-up can compress the $1.96B FCF toward levels that no longer support a double-digit yield narrative. Hidden lease obligations and the historical $55B-scale claim structure from the restructuring era remain the legitimate reason the market keeps a structural discount rather than re-rating to peer mid-cycle multiples.
I weigh the counter-case as real but already heavily discounted. A 13% FCF yield and 10-ish times clean earnings after a completed Chapter 11, with revenue still growing low-double-digits and capex covered 2x by operating cash flow, leaves more cushion for mean-reversion than the bears admit. The stock does not need peak margins forever; it needs margins to settle in the low-double-digits and FCF to remain positive through a normal cycle. At $51 the market is pricing something closer to structural impairment than to a normalized mid-cycle earner.
I would flip to neutral or bearish if 2026 operating margin falls below 10%, if free cash flow drops under $1B on rising capex or working-capital drain, or if a transparent lease-adjusted net-debt figure emerges above roughly 3x EBITDA without a clear deleveraging path. Confirmation of sustained sub-10% revenue growth plus Brazil recession would also break the thesis. Conversely, another year of $1.5B-plus FCF and any credible net-debt reduction would force a re-rating toward the $80–100 zone the valuation work already sketches.
Qwen Reading local experiment · off-panel
The numbers that actually matter here are buried under a layer of broken data. The "canonical metrics" section is a mess: a P/E of 20,783, a P/B of 22,691, an EV/EBITDA of 7,450 — these are not valuations, they are division-by-near-zero artifacts from a data feed that is clearly using a stale or partial earnings figure. Strip that away and do the arithmetic yourself: $15.07B market cap divided by $1.46B net income gives you a trailing P/E of roughly 10.3x. $15.07B divided by $14.27B revenue is 1.06x sales. $1.96B free cash flow against a $15.07B cap is a 13% FCF yield. Those are the real numbers, and they tell a very different story from the "absurd multiples" the Pre-Flight Intelligence layer keeps repeating. The company went from a $4.65B loss in 2021 to a $1.46B profit in 2025, revenue nearly tripled from $4.88B to $14.27B, and operating margin climbed from deeply negative to 16.4%. That is not a "mature earner" — the Rule-Based Classification at 0.75 confidence is mislabeling a post-bankruptcy recovery as steady-state maturity, which matters because it changes what you expect the earnings trajectory to look like.
What genuinely stands out to me is the cash flow quality relative to the equity story. Operating cash flow of $3.74B against capex of $1.78B leaves $1.96B of FCF, and that is before you even touch the $2.15B cash on the balance sheet. The 2025 net margin of 10.2% is the highest in the five-year window and, more importantly, it is the third consecutive year of improvement ($581.8M → $977M → $1.46B). The 2022 net income of $1.34B, which looks like a peak on the surface, was almost certainly inflated by one-time restructuring gains; the 2023-2025 progression is the cleaner read on underlying earnings power. Revenue is growing at 11.2% year-over-year, which for a regional airline in a recovering Latin American market is solid but not extraordinary. The FCF CAGR of 15.6% over the recovery window is the number that should anchor any valuation, and at 13% FCF yield the stock is not cheap, but it is not expensive for a business generating 16% operating margins.
The Valuation Synthesis layer calls this a +123% undervaluation with a composite fair value of $98.17 and a signal-adjusted $115. I cannot get there from the data. To justify $98 per share on ~293 million shares, you need roughly $28.7B of equity value. Even if you apply a generous 15x to the $1.96B FCF, you get $29.4B before subtracting debt. And here is the critical unknown the briefing does not resolve: the balance sheet shows "Total debt: —" and debt-to-equity of 0, which is almost certainly a data gap, not a genuine zero. The bear narrative references a "$55B+ debt burden," the thesis evaluation cites "$2B debt reduction" as a bull point, and the narrative layer talks about a "leverage play, not an equity story." If LATAM still carries $8-12B of post-restructuring debt (a reasonable estimate for a company that emerged from Chapter 11 in 2022), then the equity value at 15x FCF is closer to $17-19B, or $58-65 per share. That is a modest premium to $51.48, not a 123% re-rating. The model is treating this as a no-growth-floor calculation and then layering growth on top, but for a cyclical airline the "floor" is the problem, not the ceiling.
The strongest case against my read is the one the Market Forces layer makes, and I take it seriously: 16.4% operating margin for an airline is near the top of the historical range, and the 2025 print likely benefits from a favorable fuel-cost window, post-pandemic demand normalization, and a weakened Avianca competitor. The moment capacity normalizes across the region, fuel ticks up 15-20%, or the Brazilian real and Chilean peso take a 10% hit, that margin compresses to 8-10% and the $1.46B net income becomes $700-900M. At 10x that, the stock is worth $25-30, not $51. The ROIC of -2.6% (even if the calculation is suspect) is a reminder that the capital base is still large relative to the returns being generated, and the current ratio of 0.60 signals a balance sheet that is still tight. The "Sector Leader" tag in the secondary signals is doing a lot of work that the numbers don't fully support — LATAM leads in Latin America, but it is a regional player in a fragmented, price-competitive market with no true moat.
What would flip me: a quarterly print showing operating margin holding above 14% for two consecutive quarters while revenue growth stays above 8% would confirm the 2025 numbers are the new floor, not the peak, and I would push my fair value toward $65-70. Conversely, a fuel price spike above $110/barrel sustained for a quarter, a 15%+ devaluation in BRL or CLP, or any hint of a new debt restructuring would send me to the bear side of the thesis and I would see $35-40 as the right range. The 2Q26 earnings report and the next fuel-cost cycle are the two data points that matter most in the next 90 days.
Big-3 Panel — where each AI stands
Advanced Analysis Forensic deep-dive · separate lenses
LATAM has executed a remarkable operational turnaround since exiting Chapter 11. Revenue has scaled from $4.88B (2021) to $14.27B (2025), gross margin expanded from -1.6% to 29.2%, and operating margin from -70.1% to 16.4% — an unusually strong margin trajectory for a network airline. Net income of $1.46B on $14.27B revenue (10.2% net margin) and FCF of $1.96B (13.7% of revenue) is high-quality: OCF/NI of 1.95x, negative accruals (-7.2% of assets), and a Beneish M of -2.98 all point to conservative, cash-backed earnings rather than accrual-inflated ones. Balance sheet is materially healthier than the airline norm: $2.15B liquid cash equals net cash position, and FCF fully self-funds the business. Diluted share count has collapsed from 606B (2021, restructuring artifact) to 294.7M (2025), and even year-over-year 2024 to 2025 shows modest shrinkage (302.3M to 294.7M) — genuine per-share concentration, not just post-BK optics. The concerns are structural to the industry, not idiosyncratic: Altman Z of 1.77 sits in the distress zone (reflecting the asset-heavy, lease-laden airline model), and airlines historically give back margin gains in downcycles. But on the numbers in hand, this is a solidly-run business, not a shaky one.
Verify before trusting this (6)
- Lease-adjusted leverage and debt maturity schedule post-emergence
- Whether the 2024 to 2025 share count decline reflects an authorized buyback vs. mechanical adjustments
- Fuel hedging policy and exposure
- Fleet age, capex outlook, and aircraft order commitments
- Route/geographic concentration in Brazil and Chile and FX exposure
- Any remaining Chapter 11-related contingent claims or warrants
The e2e composite fair value is $98.17 and the signal-adjusted FV is $115 (DCF $115.08), implying 90-120% upside from $51.48. I discount the DCF as almost certainly too generous - a 2x+ FV for a Latin American airline embeds heroic through-cycle margins - but the EPV floor of $64.36 is the more defensible anchor, and even that implies roughly 25% upside without any growth heroics. Company quality is Strong post-restructuring with real cash generation and buybacks, which supports paying closer to EPV than to a distress multiple.
Verify before trusting this (5)
- Through-cycle EBIT margin assumption inside the DCF - if it exceeds ~10% the FV is not credible
- Net debt and lease-adjusted leverage post-Chapter 11
- Cargo segment contribution and its sustainability vs 2021-22 peak rates
- FX exposure disclosures (BRL, CLP) and any hedging
- Fleet capex commitments over next 3 years
The macro tape is mildly constructive (VIX 15, S&P near highs, risk-on score +32), which is a modest tailwind for a cyclical, EM-exposed airline. But with beta 0.89 the market lift lands only lightly on LTM, and higher long rates (10y 4.69%) plus a stretched market PE cut against a debt-heavy, capital-intensive carrier where the equity is effectively a leverage play. Net macro read: small tailwind, muted by rate sensitivity. The narrative is where the real pressure sits, and it is unresolved. LATAM's post-Chapter 11 turnaround story exists but is low-intensity, low-cult, and explicitly fragile - the market is not paying for the recovery yet, and there is no momentum-chasing crowd defending the name. Recent price action (a 3.35% drop with no company-specific news) shows the stock trades as a sector/macro proxy, meaning it wears any airline or EM wobble without a strong narrative shield. Analyst tone and news flow are quiet rather than supportive. Momentum is positive on longer horizons but not accompanied by a strengthening story, so the sentiment picture is a stock caught between a benign tape and a story the market refuses to underwrite - roughly balanced, with slightly more downside asymmetry if the tape turns.
Verify before trusting this (4)
- Whether sell-side begins target revisions higher on margin recovery evidence
- Fuel and BRL/CLP moves that could trigger sector-wide EM airline de-rating
- Any credit-rating upgrade or debt refinancing that would shift the narrative from leverage-play to equity-story
- VIX break above 20 or risk-off rotation that would disproportionately hit EM cyclicals
Air travel in Latin America is a structurally under-penetrated market being served by carriers that all recently passed through restructuring; the survivor with the cleanest cost base and widest network wins the recovery's first innings. LATAM is that carrier today. Against that, the world's macro setting is unfriendly to leveraged, dollar-cost/local-revenue businesses: high long rates raise refinancing cost, and any regional currency slide converts operating gains into reported stagnation. The honest read is a genuinely improving operating machine sitting inside a volatile, FX-exposed, cyclical wrapper — growth is real, its reported smoothness is not guaranteed.
When we made this prediction on Aug 23, 2026, LTM was $51.48. We expect it to be $71.00 by Feb 2027, and we consider it great value under $55.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 23, 2026.
Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.
Post-Report Due Diligence UNSETTLED
Evidence for a closer look, not a verdict — no score or designation on this page has been changed by it. Items marked material are ones where a conclusion above moves to the other side of the price.
adjusted_earnings
flips down 25%