IAG: most mispriced European airline stock, broker says

(CercleFinance.com) - Berenberg maintains its "buy" rating on IAG shares, with a target price of 780 pence, saying that the market is overestimating the risks to the airline group's margin.


In a note to clients, the German broker writes that IAG's valuation implies that the group's earnings will fall by over 1.8 billion euros, despite little evidence pointing to a near-term margin collapse.

"We believe IAG is now the most mispriced European airline stock, although we still like Air France for its self-help measures and its gearing to longhaul pricing," it added.

Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.