IAG share price: Credit Suisse remains bullish on group

on Oct 31, 2016
Updated: Oct 21, 2019
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Credit Suisse remains bullish on International Consolidated Airlines Group (LON:IAG) following the company’s latest results on Friday when the British Airways and Iberia owner hiked its payout to shareholders. The analysts have pointed to the FTSE 100 company’s upcoming Capital Markets Day which they argue could be a catalyst.

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IAG’s share price has been subdued in today’s session, having lost 0.55 percent to 435.60p as of 12:47 GMT. The decline is largely in line with losses in the broader London market, with the benchmark FTSE 100 index currently standing 0.42 percent lower at 6,967.08 points. The group’s shares have lost more than a quarter of their value over the past year, and are down by some 28 percent in the year-to-date.

Credit Suisse reiterated its ‘outperform’ rating on IAG today, and retained its price target of 469p on the shares. The analysts pointed to the group’s upcoming Capital Markets Day on Friday which they argue would help build confidence around the resilience of British Airways’ top-line growth in its premium segment. The airline’s chief executive Alex Cruz is also expected to unveil new self-help initiatives centred on increased efficiency at the British flag carrier.

Sharecast further quoted Credit Suisse as seeing the potential for €1 billion of opportunities from such measures. The analysts also argue that the company’s future cash distributions might become more compelling, although that would depend on the resilience of IAG’s revenues.
The upbeat comments come after the British Airways parent updated investors on its recent performance on Friday, and raised its interim dividend by 10 percent to 11 euro cents per share.
Beaufort Securities also remains bullish on IAG with a ‘buy’ rating, without specifying a valuation on the shares, while HSBC, which sees the British Airways owner as a ‘neutral,’ set a price target on the stock of 450p today.
As of 13:18 GMT, Monday, 31 October, International Consolidated Airlines Grp share price is 385.00p.

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