Strong Q1 Performance and Strategic Initiatives Position International Consolidated Airlines for Growth

In a report released today, Jaina Mistry from Jefferies maintained a Buy rating on International Consolidated Airlines (IAG – Research Report), with a price target of £4.00.

Jaina Mistry’s rating is based on International Consolidated Airlines’ strong performance in the first quarter, where the company exceeded expectations across all metrics. The positive results have led to an anticipated upgrade in full-year profit forecasts by approximately 6%. The company has maintained its guidance, with a slight reduction in non-fuel costs, and has provided an optimistic outlook for the second quarter, particularly in premium demand.
Jaina Mistry also sees value in the company’s shares due to several factors, including ongoing self-improvement initiatives, minimal carbon-related challenges, and robust cash flow generation. The company’s profit margins have surpassed pre-pandemic levels and are expected to continue growing as long-haul capacity recovers and British Airways’ self-help strategies take effect. Additionally, the strong balance sheet provides the flexibility to expand through acquisitions or increase dividends, positioning the company favorably compared to competitors.

In another report released on April 25, Deutsche Bank also maintained a Buy rating on the stock with a £3.70 price target.

Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IAG in relation to earlier this year.