IAG: Stifel upgrades stock, doubles TP

(CercleFinance.com) - Stifel upgrades its recommendation on IAG shares from 'hold' to 'buy', with a target price doubled from E2.
5 to E5, believing that while 2024 has ended on a strong footing, there is still a lot to come for the Anglo-Spanish airline.

The cost transformation at British Airways will gain momentum, enabling a group margin of 13.6% this year and 14.3% in 2028 (against the pre-pandemic record of 13.2%), the broker believes.

Stifel also believes that, with excess cash generation of over E1bn a year, further share buybacks are likely, bolstering an already solid 5% yield thanks to regular dividend payments.


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