Liberum ups IAG to 'buy', cites attractive entry point
International Consolidated Airlines Group SA (CDI)
334.20p
17:15 03/06/25
Liberum upped its stance on British Airways and Iberia owner IAG to ‘buy’ from ‘hold’ on Wednesday as it argued that recent share price weakness offers an attractive entry point.
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The broker, which kept its price target unchanged at 215p, said the path to recovery from the pandemic will be neither straight nor simple, but it is confident that air travel will make a convincing recovery in the medium term.
"We see IAG remaining a structural winner in the European industry, underpinned by strong liquidity in the short term," it said.
"The group has efficient costs, and a strong capital allocation discipline through its multiple operating companies.
"Its strategic position is highly attractive, with the strongest slot position at Heathrow, the main airport for the largest and most attractive origin and destination in Europe, and leading positions in both the North Atlantic and South Atlantic markets.
"We are confident that IAG can restore its margins and ROIC (return on invested capital) to pre-pandemic levels, potentially as early as 2023E. These matched the best in class in the European industry."