LATAM Airlines Group (NYSE:LTM) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Wednesday, Zacks.com reports. The brokerage presently has a $9.25 target price on the transportation company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 7.31% from the stock’s current price.
According to Zacks, “LATAM Airlines' heavyweight deal with Delta Air Lines is a huge positive. The deal has strengthened LATAM Airlines’ capital structure and free cash flow. Efforts to control costs are impressive too. In the first nine months of 2019, non-fuel unit costs declined 2.3%. However, weakness in its international unit due to adverse foreign currency movements apart from excess capacity in certain markets do not bode well. Low cargo revenues mainly due to sluggish import markets partly owing to weaker currencies are concerning too. Akin to the past few quarters, adverse foreign currency movements are likely to have dented the carrier's fourth-quarter 2019 performance as well. Detailed results will be out on March 4. Shares of LATAM have underperformed its industry in a year's time mainly due the above-mentioned headwinds.”
LTM has been the topic of several other research reports. Citigroup raised shares of LATAM Airlines Group from a “neutral” rating to a “buy” rating and set a $15.00 target price on the stock in a research note on Friday, September 27th. TheStreet raised shares of LATAM Airlines Group from a “d+” rating to a “c-” rating in a research note on Wednesday, October 9th. Bank of America raised shares of LATAM Airlines Group from an “underperform” rating to a “neutral” rating in a research note on Friday, September 27th. ValuEngine raised shares of LATAM Airlines Group from a “hold” rating to a “buy” rating in a research note on Monday, December 30th. Finally, Barclays increased their target price on shares of LATAM Airlines Group from $11.00 to $12.00 and gave the company an “equal weight” rating in a research note on Friday, November 15th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and four have given a buy rating to the stock. LATAM Airlines Group presently has an average rating of “Hold” and a consensus target price of $11.79.
LATAM Airlines Group stock traded down $0.01 during mid-day trading on Wednesday, reaching $8.62. 19,301 shares of the company’s stock traded hands, compared to its average volume of 855,506. The company has a market cap of $5.31 billion, a price-to-earnings ratio of 45.48 and a beta of 1.28. The stock has a 50 day moving average of $10.38 and a two-hundred day moving average of $10.17. LATAM Airlines Group has a 12-month low of $7.62 and a 12-month high of $12.30.
LATAM Airlines Group (NYSE:LTM) last announced its earnings results on Wednesday, November 13th. The transportation company reported $0.14 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.16 by ($0.02). LATAM Airlines Group had a net margin of 1.13% and a return on equity of 3.45%. The firm had revenue of $2.59 billion during the quarter, compared to analysts’ expectations of $2.65 billion. As a group, sell-side analysts forecast that LATAM Airlines Group will post 0.17 earnings per share for the current year.
Hedge funds have recently bought and sold shares of the stock. Banco Santander S.A. increased its stake in LATAM Airlines Group by 119.2% in the 3rd quarter. Banco Santander S.A. now owns 705,750 shares of the transportation company’s stock worth $7,834,000 after buying an additional 383,740 shares during the period. Point72 Asset Management L.P. bought a new position in LATAM Airlines Group during the 3rd quarter worth about $205,000. Sumitomo Mitsui Trust Holdings Inc. grew its holdings in LATAM Airlines Group by 228.9% during the 3rd quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 59,302 shares of the transportation company’s stock worth $658,000 after acquiring an additional 41,272 shares in the last quarter. Millennium Management LLC grew its holdings in LATAM Airlines Group by 874.3% during the 3rd quarter. Millennium Management LLC now owns 416,515 shares of the transportation company’s stock worth $4,623,000 after acquiring an additional 373,765 shares in the last quarter. Finally, Quadrant Capital Group LLC grew its holdings in LATAM Airlines Group by 710.1% during the 3rd quarter. Quadrant Capital Group LLC now owns 10,224 shares of the transportation company’s stock worth $112,000 after acquiring an additional 8,962 shares in the last quarter. 2.51% of the stock is currently owned by institutional investors.
LATAM Airlines Group Company Profile
LATAM Airlines Group SA, together with its subsidiaries, provides passenger and cargo air transportation services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, the Asia Pacific, and rest of Latin America. The company operates in two segments, Air Transportation; and Multiplus Coalition and Loyalty Program.
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