LTM Should I Buy
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LATAM Airlines Group SA (LTM) is not a strong buy for a beginner investor with a long-term strategy at this time. While the company has shown strong financial growth and hedge funds are buying, the technical indicators and recent analyst downgrades suggest limited upside potential in the near term. Additionally, the stock lacks strong trading signals or significant positive catalysts to justify immediate investment.
The MACD histogram is negative (-1.095) and expanding downward, indicating bearish momentum. RSI is neutral at 21.914, and moving averages are converging, showing no clear trend. The stock is trading near its support level (S1: 58.886), with resistance at R1: 65.402. Overall, the technical indicators suggest a lack of upward momentum.
Hedge funds are significantly increasing their positions, with a 1001.93% increase in buying over the last quarter. The company's financial performance in Q4 2025 showed strong revenue growth (16.10% YoY) and a significant increase in net income (78.09% YoY).
Goldman Sachs recently downgraded the stock to Neutral, citing limited room for further improvement. The MACD and other technical indicators show bearish momentum. The stock dropped 2.9% following the downgrade.
In Q4 2025, LATAM Airlines reported revenue growth of 16.10% YoY to $3.87 billion, net income growth of 78.09% YoY to $484.29 million, and an increase in gross margin to 29.87%. EPS remained unchanged at 0.
Recent analyst ratings are mixed. Goldman Sachs downgraded the stock to Neutral with a reduced price target of $64.10, citing limited upside potential. Barclays raised its price target to $75, maintaining an Overweight rating, highlighting strong performance amid a resilient macro backdrop. Overall, analysts are cautious about significant near-term growth.
