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Stock impact report

LATAM Airlines: Valuation Is Flying Too High [Seeking Alpha]

LATAM Airlines Group S.A. American Depositary Shares (each representing two thousand (2,000) shares of) (LTM) 
US:NYSE Investor Relations: latamairlinesgroup.net
Company Research Source: Seeking Alpha
Investors have recently rewarded the stock with an almost 85% run since April, pushing its valuation above 10x Forward Price to Earnings Ratio. This means the company is more richly valued than United and Delta, while also trading at almost +50% of Copa Airlines' Forward Price to Earnings. I recommend shareholders to take profits at this time as LATAM is exposed to significant risks related to developing economies and a multiple contraction could be around the corner. Janice Chen/iStock Editorial via Getty Images I wrote two articles this year about LATAM Airlines ( NYSE: LTM ) and in both I rated the company as a Hold. Despite showcasing how dominant the company had become within South America This article was written by Analyst's Disclosure: I/we have a beneficial long position in the shares of CPA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other th Show less Read more
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