Narrative Update: LATAM Airlines Group Sees Slight Reduction in Analyst Price Target
Analysts have modestly lowered their price target for LATAM Airlines Group, adjusting it from $26.27 to $25.85. They cited a slightly increased discount rate and updated financial projections as reasons for the change.
What's in the News
- LATAM Airlines Group reported continued growth in passenger traffic, with passenger load factors for the third quarter of 2025 reaching 85.4%, up from 84.9% a year earlier (Announcement of Operating Results).
- The company completed a follow-on equity offering totaling approximately $676 million, offering over 15.5 million American Depositary Shares at $43.6 each (Follow-on Equity Offerings).
- LATAM announced the acquisition of up to 74 Embraer E195-E2 aircraft, further advancing its expansion strategy across South America. The order includes 24 firm orders valued at about $2.1 billion (Business Expansions).
- Certain common shareholders remain under lock-up agreements that restrict share sales for 30 days following several recent equity offerings. The most recent period extends to October 25, 2025 (End of Lock-Up Period).
- The company proposed a reduction of capital and amendment of bylaws through the cancellation of over 30.2 billion treasury shares, subject to shareholder approval in October 2025 (Changes in Company Bylaws/Rules).
Valuation Changes
- Consensus Analyst Price Target decreased modestly from $26.27 to $25.85.
- Discount Rate increased slightly from 12.77% to 12.91%.
- Revenue Growth projection remains effectively unchanged at 7.31%.
- Net Profit Margin estimate is virtually stable, holding at 11.37%.
- Future P/E ratio decreased mildly from 12.00x to 11.91x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.