(CercleFinance.com) – IAG yields more than 2% to Madrid, penalized by an analysis by Stifel which downgraded its recommendation on the stock, going from ‘buy’ to ‘hold’ with a price target reduced from 3 to 1, 7 euro, expecting a more limited EBIT this year due to operational problems at British Airways thwarting the recovery this summer.
“With industry demand and cost headwinds starting next year, IAG’s EBIT turnaround looks set to be delayed until 2027,” the brokerage adds, lowering its EBIT expectations for 2022 (-45%) and 2023 (-24%).
While a return to positive FCF seems unlikely in the short term, Stifel sees little risk from a capital increase and remains positive about a potential acquisition of Air Europa by the Anglo-Spanish carrier.
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