Update shared on03 Oct 2025
Fair value Increased 5.69%LATAM Airlines Group's analyst price target has increased from $24.86 to $26.27 as analysts cite adjustments in fair value modeling and refined discount rates to reflect evolving market conditions.
What's in the News
- LATAM Airlines Group and its affiliates announced a major fleet expansion, ordering up to 74 Embraer E195-E2 aircraft. This includes 24 firm deliveries starting in 2026 and 50 purchase options to boost South American connectivity (Key Developments).
- The company's network has grown from 129 to 160 passenger destinations since 2021, marking a 24% increase and strengthening regional operations (Key Developments).
- LATAM completed multiple follow-on equity offerings and raised over $1.7 billion through American Depositary Shares in 2025, supporting ongoing investments (Key Developments).
- Certain common shares are under lock-up agreements with periods ending in September and October 2025, restricting sales for specified durations after equity offerings (Key Developments).
- LATAM Airlines Group reported consistent growth in passenger and cargo traffic throughout 2025, with increased passenger load factor and destinations served (Key Developments).
Valuation Changes
- Fair Value Estimate has risen slightly from CLP 24.86 to CLP 26.27. This reflects analyst adjustments to market assumptions.
- Discount Rate has increased modestly from 12.60% to 12.77%, indicating higher perceived risk or cost of capital.
- Revenue Growth Projection remains nearly unchanged at approximately 7.31%.
- Net Profit Margin has declined marginally, moving from 11.42% to 11.37%.
- Future P/E Ratio has increased from 11.17x to 12.00x, suggesting higher expected valuation multiples for earnings.
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