After a decrease in 20%, the price of IAG shares returns to the territory of deep value?

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. IAG (LSE: IAG) The price of the action doubled last year, which makes it the best contractor in FTSE 100. Investors who wanted to add shares to their portfolio could regret that they lost their chance as a result.

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Now they have a second chance. Shares at the International Consolidate Airlines Group, dominant company British AirwaysIN IberiaIN Aer Lingus AND VuelingSuddenly it fell by 20% in the last month. However, they continued to raise by 80% within 12 months.

Investors who like to buy good companies in bad news can tempt. I think it’s a good participation. The question is: how bad can messages be?

Is FTSE 100 DIP an opportunity to buy?

IAG was of course stuck by Pandemia, which resisted its fleet, and left a company with enormous debts. Over the years, the price -profit ratio was one of the lowest on FTSE 100, about three or four.

Then last year investors decided that they suffered enough. As the American economy flourishes, they noticed a enormous opportunity on a transatlantic journey, to which IAG could employ British Airways.

February 28 year -round results seemed to justify their trust. Revenues from the quarter increased by 11% to EUR 8 billion, overcoming expectations of EUR 7.7 billion, at the same time the operating profit increased by 91% to EUR 961 million. The consensus suggested only EUR 754 million.

With free cash flows jumping by 29% to EUR 3.6 billion, the Management Board felt so sure or announce the purchase of shares worth EUR 1 billion. It clearly thought that he was still of great value in the warehouse.

Enter Donald Trump. Markets are afraid of European trading tariffs, and the potential recession in the US will achieve the demand for air flight. Hence this decline.

Many will be tempted, despite the dangers. The p/e IAG factor has increased below six, which suggests that the actions are seriously underestimated in relation to the potential of earnings.

Even if the shares are flown, investors can now wait for dividends. The final efficiency is 2.74%, but it is expected that this year it will reach 3.36% and 3.83% in 2026.

Dividends and purchase of sharing

Of course, dividends are not guaranteed, and shareholders withdrawals can be hit if IAG profits. Each slowdown in earnings may also hinder the progress in the repayment of the group’s debt, which is still 5.7 billion GBP.

Market analysts remain optimists. 26 analysts offering annual stock price forecasts have created a median for 390p. If it is correct, this projection is an raise of over 40% compared to current levels.

However, most of these forecasts were probably presented before the last variability and may not fully take into account Trump’s challenges.

The investor considering IAG shares today must see how the trade war will spread. The problem is that nobody knows, probably even Trump. Today’s uncertainty looks like the possibility of buying, but only for investors who plan to store shares for at least five years and preferably longer.

I hope that by that time today’s eruptions have calmed down. It is worth noting, however, that the airlines seem to be on the first line of every economic, geopolitical and meteorological interference. IAG may remain bumpy, but to answer my own question, I think we see deep value today.

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