IAG shares continue to soar and are increasingly closer to the 3 euro level. Its revaluation in the year already exceeds 43% and 30 points of that increase were achieved only in the last three monthsthat is, 70%. It is, in fact, in this period of time, the most bullish firm on the Ibex 35.
The new falls in oil (the price of crude oil fell by more than 5% this Monday, once again suffering red numbers for the year) boosted the airline’s shares, which once again set new highs for the year and placed its price at 2020 levels in full decline due to the outbreak of the pandemic.
The firm accumulates four consecutive months of increases, including October. This month, IAG once again registers increases in the Spanish stock market of more than 3% and is placed sixth in the ranking of the 10 biggest increases in the Spanish index since October began.
The rise that IAG accumulates on the stock market in 2024 would be, if the year closes at this moment, the company’s best annual balance in more than a decade. Specifically since 2013 when the Spanish-British firm doubled its market value. But analysts still do not believe that the company’s party on the stock market has any signs of ending in the coming months: they set for its securities an additional 16% upside potential.
The consensus of experts that collects Bloomberg sets the average value for the airline on the stock market at 2.95 euros, although up to 13 of these analysis banks already establish the target price for IAG shares at 3 euros or above. The tourism company has not been listed at this level since March 2020. In fact, The most optimistic valuations even see the company at 5.39 euros by title. This price not only leaves it with a potential rise of 110%, but would also allow its shares to return to levels prior to the outbreak of Covid-19.
The Renta 4 team recently revised its valuations and joined this group of experts who see IAG above 3 euros per share. From the investment bank they justify their valuation in the good operational evolution of the company and the best prospects. Furthermore, they assessed the withdrawal of Air Europa’s offer as positive: “It has been a correct decision taking into account the demands imposed by the European Commission. However, we believe that IAG has with good growth options, both organically and via acquisitions (privatization of TAP). Although IAG is in an intensive investment process, we consider that it has room to improve shareholder remuneration, including a share buyback plan,” they argue.
Quarterly results
On November 8, IAG will announce the results of the third quarter of the year, that is, the data collected during the summer, which tends to be the best results account of the year. And experts expect him to announce the highest profit ever achieved by the airline in this period. Specifically, they project net profits from July to September of 1,307 million euros, improving the already historic figure of the previous year by 6%.
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