Johannes Braun, an analyst from Stifel Nicolaus, maintained the Buy rating on International Consolidated Airlines (IAG – Research Report). The associated price target is €5.00.
Johannes Braun has given his Buy rating due to a combination of factors that highlight the strong financial performance and future prospects of International Consolidated Airlines. The company reported a significant 45% EBIT beat for Q4, reaching €1.1 billion, which surpassed both consensus and Stifel estimates. This impressive performance was primarily driven by robust unit revenues, particularly in the transatlantic market, which saw a remarkable 14% increase in Q4.
Furthermore, the company demonstrated strong free cash flow of €3.6 billion, a 200% year-over-year increase, allowing for a €1 billion share buyback. Despite higher non-fuel unit costs, the overall financial health and strategic initiatives, such as the share buyback, position the company well for future growth. The company’s positive outlook on travel demand and capacity growth, along with effective cost management strategies, further support the Buy rating.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a £3.50 price target.