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Michele Maatouk Sharecast News
21 Mar, 2024 09:09 21 Mar, 2024 09:09

RBC Capital upgrades IAG to 'outperform'

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International Consolidated Airlines GroupSharecast graphic / Josh White

International Consolidated Airlines Group SA (CDI)

241.00p

15:04 15/11/24
0.75%
1.80p

RBC Capital Markets upgraded BA and Iberia owner IAG on Thursday to ‘outperform’ from ‘sector perform’ and lifted the price target to 220p from 200p.

FTSE 100

8,065.91

15:05 15/11/24
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FTSE 350

4,456.49

15:05 15/11/24
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FTSE All-Share

4,414.73

15:05 15/11/24
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Travel & Leisure

8,637.46

15:04 15/11/24
0.06%
4.84

The bank said IAG has consistently delivered, and since it relaunched coverage of the stock last June, it has increased its IAG 2025 earnings per share estimate by almost 60%, while the share price has risen only 3%.

"IAG now generate the second highest margins (behind Ryanair), but by some metrics trade on the cheapest valuation in our airline coverage," it noted.

"Airline capacity data now suggests the North Atlantic capacity is set to be more of a tailwind rather than a headwind for IAG's BA and Aer Lingus this summer," RBC said, adding that it sees upside to consensus expectations in 2024.

At 0905 GMT, the shares were up 2.2% at 165.60p.

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