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In 2024, IAG (LSE: IAG) Actions have almost doubled, and the airlines group was crowned FTSE 100The highest leaflet. Thanks to the earnings that have overcome market expectations, the company woke up with a long -term, caused sleeping pandemic with a bang.
However, the owner of British Airways and Iberia began a turbulent start by 2025. It increased almost 20% from the peak in February, did the party end with the price of IAG? Or maybe it’s just refueling another leg?
Here’s what city analysts consider to be a trade in shares to be $ 2.94 today (March 19).
Another destination of stocks
By promising, the consensus forecast for IAG is positive. Although it is generally expected that the augment in share prices will be released compared to last year, the median 12-month share price is 4.03 GBP. It would be a fit augment by 37% compared to today’s level.
However, there is a wide range of opinions among institutional analysts covering the company under the main consensus form. The following table of expert recommendations illustrates these differences.
| Recommendation | Number of analysts |
|---|---|
| To buy | 6 |
| Better results | 7 |
| To hold | 4 |
| Sell | 1 |
| Strong sales | 0 |
In the upper part, Panmure Liberum analysts believe that IAG shares can augment to 5 pounds next year, citing resistant travel demand and lower jet fuel prices as a cause of optimism. If this forecast achieved implementation, airline reserves would eventually overshadow their pre-Vovid level, marking complete recovery from Pandemic.
On the other hand, Barclays Analysts reduced the target price to 2.50 GBP last week from the previous 4.20 GBP forecast. The risk of competition from inexpensive carriers and the latest profit warnings issued by many leading American airlines were this gloomy view.
Of these extremely different perspectives, it is that no analyst has a crystal ball. Broker forecasts are not an Gospel. Investors should consider expert opinions against their independent research and beliefs.
My verdict
More stubborn forecasts for IAG are shared with my own view. The target share prices of 5 GBP may be a bit steep, but I think that in the coming months you can achieve a vast augment.
Stocks look inexpensive, which bodes well for future returns. Trade in a forward price (P/E) below 5.5, the company is attractively valued compared to the average FTSE 100 and the airlines as a whole. Other air operations on the UK Stock Exchange, such as Easyjet AND Wizz AirTrade in higher multipliers 6.9 and 7.1, respectively.
In addition, the company begins to draw prizes on an investment of modernization worth 7 billion pounds in British Airways. This two -year plan includes a significant injection of cash in IT infrastructure and employing additional employees.
In the budget year 24 IAG provided a 22% augment in operating profit to achieve a record EUR 4.3 billion, exceeding the expectations of analysts for EUR 3.7 billion. Star performance for the British flagship carrier was the basis for the group’s excellent earnings.
However, the company is in the face of risk from impoverished demand for a business trip. In a world where virtual meetings have become common, the group does not expect corporate travels will ever return to pre -standardic levels. Whether IAG can still fill business and primary places with recreational passengers, it will just be seen.
Nevertheless, with a up-to-date redemption program worth EUR 1 billion, which is to be implemented in the next 12 months and the resumption of dividends last year, there is a lot of interest of potential investors.
