Positive Long-Term Outlook for International Consolidated Airlines Amid Short-Term Challenges

Analyst Jaina Mistry of Jefferies maintained a Buy rating on International Consolidated Airlines (IAG – Research Report), retaining the price target of £4.00.

Jaina Mistry’s rating is based on a combination of factors that suggest a positive outlook for International Consolidated Airlines. Despite short-term challenges, such as elevated costs excluding fuel and macroeconomic concerns in the US, the long-term prospects appear promising. The company is expected to undergo a multiyear re-rating as it moves towards achieving best-in-class returns on invested capital and free cash flow generation.
Furthermore, the valuation of the stock is attractive, with a projected earnings per share compound annual growth rate of 12% from fiscal year 2024 to 2026, and a price-to-earnings ratio of 5.6 times for 2026. These factors contribute to a compelling investment case, leading to the Buy rating.