Goldman Sachs Downgrades LATAM Airlines Rating, Shares Drop 2.9%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy LTM?
Source: Yahoo Finance
- Rating Downgrade Impact: Goldman Sachs downgraded LATAM Airlines' rating, resulting in a 2.9% drop in its stock price during recent trading, indicating market concerns about the company's future performance and potentially undermining investor confidence.
- Market Reaction: This rating adjustment has prompted investors to reassess LATAM Airlines' financial health, which may lead to short-term capital outflows and exacerbate stock price volatility.
- Industry Outlook: Amid the global airline industry's recovery, LATAM Airlines faces increased competitive pressure, and the downgrade could limit its financing capabilities, impacting future expansion plans.
- Investor Strategy Adjustment: Investors may need to reevaluate the investment value of LATAM Airlines, considering the potential implications of Goldman Sachs' rating change on their long-term investment strategies.
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Analyst Views on LTM
Wall Street analysts forecast LTM stock price to fall
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 61.230
Low
58.50
Averages
59.25
High
60.00
Current: 61.230
Low
58.50
Averages
59.25
High
60.00
About LTM
LATAM Airlines Group SA is a Chile-based company, which is engaged in passenger and cargo air transportation, both in the domestic markets of Chile, Peru, Argentina, Colombia, Ecuador and Brazil and in a developed series of regional and international routes in America, Europe and Oceania. These businesses are performed directly or through its subsidiaries in different countries. It operates through two segments: the Air transportation business and the Coalition and loyalty program Multiplus. It Air transportation segment corresponds to the route network for air transport. Its segment of Coalition and loyalty program called Multiplus is a frequent flyer programs, which operate as a unilateral system of loyalty that offers a flexible coalition system. The Company operates a fleet of over 329 aircrafts. Its passenger aircrafts include Airbus A319-100, Airbus A350-900, Boeing 767-300ER, Boeing 787-8, Boeing 787-9 and Boeing 777-300ER.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Goldman Sachs Downgrades LATAM Airlines Rating, Shares Drop 2.9%
- Rating Downgrade Impact: Goldman Sachs downgraded LATAM Airlines' rating, resulting in a 2.9% drop in its stock price during recent trading, indicating market concerns about the company's future performance and potentially undermining investor confidence.
- Market Reaction: This rating adjustment has prompted investors to reassess LATAM Airlines' financial health, which may lead to short-term capital outflows and exacerbate stock price volatility.
- Industry Outlook: Amid the global airline industry's recovery, LATAM Airlines faces increased competitive pressure, and the downgrade could limit its financing capabilities, impacting future expansion plans.
- Investor Strategy Adjustment: Investors may need to reevaluate the investment value of LATAM Airlines, considering the potential implications of Goldman Sachs' rating change on their long-term investment strategies.
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- Revenue Growth: The company achieved revenues of $16 billion for the quarter, exceeding the Zacks consensus estimate of $15.63 billion, marking a 2.9% year-over-year increase, although revenue growth was impacted by approximately 2 percentage points due to the government shutdown.
- Fleet Modernization: Delta has reached an agreement with Boeing to acquire 30 787-10 widebody aircraft, with deliveries expected to commence in 2031, aimed at enhancing fuel efficiency and operating economics to support its international expansion strategy.
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- LATAM Airlines Standout: LATAM Airlines Group S.A. (LTM) also achieved an A+ EPS revision grade with a high Quant rating of 4.89, suggesting a strong performance in the upcoming earnings report, enhancing market confidence in its recovery capabilities.
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- Dividend Yield Advantage: The company boasts a dividend yield of 1.7%, significantly higher than the industry average of 0.9%, providing a competitive edge in attracting income-seeking investors.
- LATAM Airlines Earnings Boost: LATAM Airlines Group S.A. (LTM) also experienced a 4.2% increase in its current year earnings estimate over the past 60 days, reflecting recovery potential in the air transportation sector that could enhance market confidence.
- Dividend Yield Comparison: LATAM Airlines offers a dividend yield of 1.6%, compared to the industry average of 0.0%, indicating strong performance in profitability and shareholder returns.
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Goldman Sachs Downgrades LATAM Airlines Rating, Shares Drop 2.9%
- Rating Downgrade Impact: Goldman Sachs downgraded LATAM Airlines' rating, resulting in a 2.9% drop in its stock price during recent trading, indicating market concerns about the company's future performance and potentially undermining investor confidence.
- Market Reaction: This rating adjustment has prompted investors to reassess LATAM Airlines' financial health, which may lead to short-term capital outflows and exacerbate stock price volatility.
- Industry Outlook: Amid the global airline industry's recovery, LATAM Airlines faces increased competitive pressure, and the downgrade could limit its financing capabilities, impacting future expansion plans.
- Investor Strategy Adjustment: Investors may need to reevaluate the investment value of LATAM Airlines, considering the potential implications of Goldman Sachs' rating change on their long-term investment strategies.
See More
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- Earnings Highlights: Delta Air Lines reported Q4 2025 earnings of $1.55 per share, surpassing the Zacks consensus estimate of $1.53, despite a 16.22% year-over-year decline primarily due to high labor costs.
- Revenue Growth: The company achieved revenues of $16 billion for the quarter, exceeding the Zacks consensus estimate of $15.63 billion, marking a 2.9% year-over-year increase, although revenue growth was impacted by approximately 2 percentage points due to the government shutdown.
- Fleet Modernization: Delta has reached an agreement with Boeing to acquire 30 787-10 widebody aircraft, with deliveries expected to commence in 2031, aimed at enhancing fuel efficiency and operating economics to support its international expansion strategy.
- Future Outlook: Delta anticipates Q1 2026 adjusted earnings per share in the range of $0.50 to $0.90, with full-year earnings expected between $6.5 and $7.5, reflecting a 20% year-over-year growth, indicating optimism about future air travel demand.
See More
Industrial Stocks Analysis: LATAM, AerCap Among Top EPS Revision Grades
- Analyst Sentiment Boost: AerCap Holdings N.V. (AER) received an A+ EPS revision grade with a Quant rating of 4.71, indicating strong analyst confidence in its near-term performance, which could drive stock price increases and attract more investor interest.
- LATAM Airlines Standout: LATAM Airlines Group S.A. (LTM) also achieved an A+ EPS revision grade with a high Quant rating of 4.89, suggesting a strong performance in the upcoming earnings report, enhancing market confidence in its recovery capabilities.
- Industry Leaders: Sandvik AB (SDVKY) earned an A+ rating with a Quant score of 4.67, reflecting its robust growth potential in the industrial sector, likely drawing more institutional investor attention.
- Overall Market Trend: As earnings season approaches, the general increase in EPS revision grades for several large-cap industrial companies indicates a positive outlook from analysts, which may trigger a favorable response from investors.
See More
LATAM Airlines, Kohl's, and Dollar General Rated Buy with Strong Value Metrics
- LATAM Airlines Performance: LATAM Airlines Group holds a Zacks Rank of #1, with the current year earnings consensus estimate rising by 4.2% over the past 60 days, indicating enhanced profitability that is likely to boost investor confidence.
- Kohl's Strong Growth: Kohl's Corporation also carries a Zacks Rank of #1, with the consensus estimate for next year's earnings increasing by 104.4% in the last 60 days, suggesting robust market demand that may attract more investor attention.
- Dollar General's Stability: Dollar General Corporation has a Zacks Rank of #1, with the current year earnings consensus estimate up by 5.4%, and a P/E ratio of 22.26, which is lower than the industry average of 28.60, highlighting its relative value appeal.
- Investment Opportunities: These companies have been handpicked by Zacks experts, expected to gain over 100% in the coming months, presenting excellent investment opportunities, especially given their lower visibility in the market.
See More
S&P 500 Industrials Sector Gains 17.7% in 2025, Outperforming Broader Index
- Sector Performance: The S&P 500 industrials sector achieved a 17.7% gain in 2025, marking its third consecutive year of double-digit growth, indicating strong performance in economic recovery and surpassing the broader S&P 500's 16.39% increase.
- Investor Confidence: Strength in aerospace, machinery, and transportation stocks has bolstered investor confidence in economically sensitive segments, supported by improving demand, easing supply-chain pressures, and increased infrastructure spending, which continue to drive earnings momentum across the industrial sector.
- Health Score Analysis: According to Seeking Alpha's Quant Ratings, the industrial sector has an average health score of 3.07 out of 5, with 65 out of 361 stocks with market capitalizations above $2 billion rated Buy or higher, reflecting positive market sentiment towards the sector.
- Quant Rating Distribution: Ahead of the upcoming earnings season, the quantitative breakdown shows that high-rated stocks are driven by growth, momentum, and earnings revisions, while low-rated stocks indicate sharp deterioration in revisions and momentum, particularly in construction-linked and clean energy segments.
See More
Dollar General Corporation Earnings Estimate Raised by 5.4%
- Earnings Estimate Increase: Dollar General Corporation (DG) has seen its current year earnings estimate raised by 5.4% over the last 60 days, indicating strong performance in the discount retail sector that may attract more investor interest.
- Dividend Yield Advantage: The company boasts a dividend yield of 1.7%, significantly higher than the industry average of 0.9%, providing a competitive edge in attracting income-seeking investors.
- LATAM Airlines Earnings Boost: LATAM Airlines Group S.A. (LTM) also experienced a 4.2% increase in its current year earnings estimate over the past 60 days, reflecting recovery potential in the air transportation sector that could enhance market confidence.
- Dividend Yield Comparison: LATAM Airlines offers a dividend yield of 1.6%, compared to the industry average of 0.0%, indicating strong performance in profitability and shareholder returns.
See More
