LTM Stock Analysis: Buy, Sell, or Hold?
LTM - LATAM Airlines Group S.A. American Depositary Shares (each representing two thousand (2,000) shares of Common Stock)
$50.80
1.36 (2.75%)
▲
5d:
+2.34%
30d:
+1.72%
90d:
-6.32%
BUY
HIGH Confidence
Analysis Updated: Apr 1, 2026 12:00 AM ET
Earnings: May 05, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: LTM appears deeply undervalued. Market expects -7.0% annual earnings decline despite 88% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: LTM appears deeply undervalued. Market expects -7.0% annual earnings decline despite 88% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$123.36
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$76.60
33.7% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 9.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: LTM is currently trading at $50.80, which is considered fair relative to its 30-day fair value range of $47.24 to $54.12. From a valuation perspective, the stock is trading at a discount (Forward PE: 7.4) compared to its historical average (9.3). Remarkably, the market is currently pricing in an annual earnings decline of 7.0% over the next few years. This pessimistic expectation contrasts with the company's recent 87.5% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, LTM is in a strong uptrend. The price is approaching resistance at $51.47. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: LTM has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $70.03 (+37.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, LTM is in a strong uptrend. The price is approaching resistance at $51.47. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: LTM has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $70.03 (+37.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$47.24 -
$54.12
Company Quality Score
53/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
83.3%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 37.9% below Wall St target ($70.03)
Fair Price Analysis
30-Day Fair Range
$47.24 -
$54.12
Current vs Fair Value
FAIR
Support & Resistance Levels
Support Level
$45.97
Resistance Level
$51.47
Current Trend
Strong Uptrend
Technical data as of
Apr 1, 2026
Fundamental Context
Forward P/E (Next Year Est.)
7.44
Wall Street Target
$70.03
(+37.9%)
Revenue Growth (YoY)
16.1%
Earnings Growth (YoY)
87.5%
Profit Margin
10.2%
Valuation Discount vs History
-7.0% cheaper
PE vs Historical
7.4 vs 9.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-7.0%
(market-implied from PE analysis)
1-Year Target
$47.24
(-7%)
2-Year Target
$43.94
(-14%)
3-Year Target
$40.86
(-20%)
3-Yr Target (if PE normalizes)
(PE: 7→9)
$51.06
(+1%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: 24.9%)
$297.02
(+485%)
Base:
(SPY PE: 7.4, Growth: 24.9%)
$98.90
(+95%)
Bear:
(PE: 6.3, Growth: 24.9%)
$84.07
(+66%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (10x PE), but valuation improves significantly next year (7x PE) as earnings recover.
Trailing PE: 9.64 | Current EPS (TTM): $4.95
Bull Case
$71.41
(+44%)
Analyst growth 36.1%, PE expands to 10.6
Base Case
$64.91
(+31%)
Market implied 36.1%, PE stable at 9.6
Bear Case
$32.44
(-35%)
Severe decline -20.0%, PE contracts to 8.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 7.4 to 9.3
Stabilization Target:
$63.48
(+25.0%)
PE Expansion Potential:
+25.0%
Share & Embed Analysis
Last updated: April 02, 2026 9:08 AM ET
Data refreshes hourly during market hours. Next update: 10:08 AM
Data refreshes hourly during market hours. Next update: 10:08 AM
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