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Strong Earnings and Strategic Initiatives Position IAG as Top European Airline Pick

Strong Earnings and Strategic Initiatives Position IAG as Top European Airline Pick

In a report released today, Tabitha Foo from DBS maintained a Buy rating on International Consolidated Airlines (IAGResearch Report), with a price target of £3.60.

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Tabitha Foo’s rating is based on several compelling factors. International Consolidated Airlines Group (IAG) has shown promising earnings potential, demonstrated by its strong adjusted EPS in the third quarter of 2024, which surpassed market expectations. The company’s commitment to shareholder value is evident through the announcement of a substantial share buyback program, alongside a robust balance sheet that suggests further potential for shareholder returns.
Moreover, IAG stands out as a leading airline group with a diverse portfolio, benefiting from strong demand in premium leisure and business segments. Its strategic hedging against fuel price volatility and minimal exposure to GTF engine issues further bolster its financial outlook. The airline’s recent upgrade to investment-grade status and the initiation of dividend payments underscore its financial resilience and growth prospects, making it a top pick among European airlines, with a target price of GBP3.60.

In another report released on February 5, CFRA also maintained a Buy rating on the stock with a £3.70 price target.

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