IAG: share benefits from positive Deutsche Bank comments
(CercleFinance.com) - IAG shares rose sharply on Wednesday morning on the London Stock Exchange following a rating upgrade by Deutsche Bank, which believes that the group's turnaround has only just begun.
In latemorning trading, the airline's shares were up by over 2%, one of the biggest gains on a flat STOXX Europe 600 index.
Deutsche Bank estimates that limited capacity on transatlantic routes, which account for around 40% of British Airways' sales, should support the group's fares next year.
The broker also cites the favourable economic outlook for the US, the UK and Spain.
Adding to this the buoyant effect of lower kerosene prices, Deutsche Bank expects the owner of British Airways and Iberia to again exceed consensus forecasts in 2025.
The analyst has therefore raised its recommendation on the stock from 'hold' to 'buy', with a target price almost doubled from 215 pence to 400 pence.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
In latemorning trading, the airline's shares were up by over 2%, one of the biggest gains on a flat STOXX Europe 600 index.
Deutsche Bank estimates that limited capacity on transatlantic routes, which account for around 40% of British Airways' sales, should support the group's fares next year.
The broker also cites the favourable economic outlook for the US, the UK and Spain.
Adding to this the buoyant effect of lower kerosene prices, Deutsche Bank expects the owner of British Airways and Iberia to again exceed consensus forecasts in 2025.
The analyst has therefore raised its recommendation on the stock from 'hold' to 'buy', with a target price almost doubled from 215 pence to 400 pence.
Copyright (c) 2024 CercleFinance.com. All rights reserved.