International Consolidated Airlines Group SA (CDI) (IAG)

Sector:

Tourism and Leisure Services

Index:

FTSE 100

164.95p
   
  • Change Today:
      1.45p
  • 52 Week High: 186.45
  • 52 Week Low: 138.00
  • Currency: UK Pounds
  • Shares Issued: 4,971.48m
  • Volume: 8,666,195
  • Market Cap: £8,200m
  • RiskGrade: 338

IAG flies higher after double upgrade to 'overweight' by JPMorgan

By Michele Maatouk

Date: Wednesday 06 Mar 2024

LONDON (ShareCast) - (Sharecast News) - BA and Iberia owner IAG flew higher on Wednesday as JPMorgan Cazenove double upgraded the shares to 'overweight' from 'underweight' and lifted the price target to €2.50 from €1.45.
JPM said that previously, it had concerns that high capacity growth in 2024 would lead to pricing and earnings pressure.

"Whilst the shares have underperformed since our UW call, in our view, it's clear from the 2023 results that earnings are unlikely to decline this year," it said.

"We now see an opportunity for IAG to outperform consensus expectations despite the start of a re-investment cycle (higher opex/capex), which should then benefit longer-term earnings."

The bank said it now models flat unit revenues for 2024 and sits around 10% above Bloomberg consensus, with upside to estimates from strong leisure demand driving higher pricing.

It also noted that IAG is beginning a large re-investment cycle in 2024 which has the potential to drive sustainably higher EBIT margins from 2025 onwards.

JPM said British Airways EBIT is still around €500m below pre pandemic, with upside from capacity returning to 2019 levels and better operations/lower disruption costs.

Finally, it said that rapid de-leveraging has removed the pandemic balance sheet overhang and it forecasts "decent" free cash flow generation for 2024 despite high capex investment.

The bank lifted its 2024/25/26 EBIT estimates by 30%/33%/33% respectively, mostly due to higher revenues.

At 0900 GMT, the shares were up 4.7% at 148.50p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

BA Market Data

Currency UK Pounds
Share Price 164.95p
Change Today 1.45p
% Change 0.89 %
52 Week High 186.45
52 Week Low 138.00
Volume 8,666,195
Shares Issued 4,971.48m
Market Cap £8,200m
RiskGrade 338

BA Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
86.58% above the market average86.58% above the market average86.58% above the market average86.58% above the market average86.58% above the market average
84.62% above the sector average84.62% above the sector average84.62% above the sector average84.62% above the sector average84.62% above the sector average
Price Trend
38.10% above the market average38.10% above the market average38.10% above the market average38.10% above the market average38.10% above the market average
50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average
Income
91.17% above the market average91.17% above the market average91.17% above the market average91.17% above the market average91.17% above the market average
90.00% above the sector average90.00% above the sector average90.00% above the sector average90.00% above the sector average90.00% above the sector average
Growth
98.43% above the market average98.43% above the market average98.43% above the market average98.43% above the market average98.43% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 5
Buy 6
Neutral 5
Sell 0
Strong Sell 0
Total 16
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

BA Dividends

  Latest Previous
  Interim Final
Ex-Div 28-Nov-19 04-Jul-19
Paid 02-Dec-19 08-Jul-19
Amount 14.50¢ 16.50¢

Trades for 17-Jun-2024

Time Volume / Share Price
15:19 384 @ 164.95p
15:19 366 @ 164.95p
15:19 659 @ 164.95p
15:19 3,439 @ 165.00p
15:19 2,103 @ 165.00p

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