IAG share price flies high amid upbeat broker comments

on Apr 11, 2017
Updated: Oct 21, 2019
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Shares in British Airways and Iberia parent International Consolidated Airlines Group (LON:IAG) have soared to the top of the FTSE 100 leaderboard as Exane set a positive tone on the European airline sector. The upbeat comments came after the blue-chip company, which also owns Aer Lingus, Vueling and new low-cost long-haul carrier Level, posted a rise in March traffic earlier this month.

As of 13:18 BST, IAG’s share price had added 4.07 percent to 550.00p, outperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.62 percent higher at 7,394.81 points. The group’s shares have gained more than three percent over the past year, and are up by some 24 percent in the year-to-date.
Reuters reported today that shares in IAG had advanced after Exane BNP Paribas set a positive tone on the European airline sector, upgrading its view on German rival Lufthansa.

“We firmly stand by our view that European and global demand will remain stubbornly strong, notwithstanding the potential impact of geopolitical events,” the analysts wrote, as quoted by the newswire. Exane BNP Paribas, which has a ‘buy’ rating on the British Airways parent, set a price target of 640p on the shares yesterday.
The comments are a boost for IAG, which reported last week that its traffic, measured in revenue passenger kilometres, had increased by 2.6 percent last month, as compared with March 2016. Group capacity measured in available seat kilometres meanwhile rose by 2.4 percent, while premium traffic came in 6.9 percent higher as compared with the prior-year period.
According to MarketBeat, IAG currently has a consensus ‘buy’ rating and an average price target of 452.40p. IAG is scheduled to update investors on its first-quarter performance on May 5, when the company will also post its April traffic statistics.
As of 13:52 BST, Tuesday, 11 April, International Consolidated Airlines Grp share price is 551.63p.

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