Citi stays at 'neutral' on IAG, says will never return to 'former glory'

Analysts at Citi lowered their target price for shares of IAG ahead of the airline's rights issue, arguing that they do not expect it to ever return to its former glory.

They lowered their estimate for financial year 2020 net profits to -€31.2bn, under the assumption of a 59% drop in volumes.

Profits were expected to recover in 2021 to reach €70m thanks to 77% growth in volumes.

On the back of those changes, Citi cut its target price from 250.0p per share to 220.0p, but retained its 'neutral' recommendation on the stock.

"Essentially, no matter what the dilution, we never see the company returning back to previously peak profits nor its former glory."