DBS analyst Tabitha Foo maintained a Buy rating on International Consolidated Airlines (IAG – Research Report) today and set a price target of £4.00.
Tabitha Foo’s rating is based on several positive indicators for International Consolidated Airlines. The company reported an adjusted EPS of EUR0.27 for the third quarter of 2024, marking a 17.4% year-over-year increase and surpassing expectations. Additionally, the announcement of a EUR350 million share buyback reflects the company’s strong balance sheet and potential for further shareholder returns.
International Consolidated Airlines is one of the largest airline groups globally, with a diverse portfolio of five airline brands that cater to various customer segments. The company is expected to see strong earnings growth due to robust demand in the premium leisure market and limited capacity expansion in Europe. Furthermore, the company has effectively managed its financial leverage, securing an investment-grade rating upgrade from S&P Global Ratings, and has hedged a significant portion of its fuel exposure, insulating it from rising jet fuel prices.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a £4.00 price target.