IAG is putting the brakes on the recovery along with JP Morgan. The airline, which was able to regain its levels before the outbreak of the war in Gaza, lost approximately 3% after the American entity’s administration published a report in which it updated its expectations for the European aviation sector. For the Spanish company, they advise reducing weight.
Analysts at JP Morgan believe there is potential for a significant increase in capacity within the aviation sector to impact traditional airline revenues in an environment characterized by weak economic growth. In this context, experts show a clear preference for low-cost companies such as Rainier, which they expect to benefit in their margins and growth.
On a day when the European Travel & Tourism sector fell 0.75%, IAG led the declines. In previous sessions, the company recovered 1.8 euros from its lowest levels of 1.58 recorded last October. The most pressing challenge for it was to return to 1.99 euros, the maximum recorded last September. The recovery recorded in recent sessions was supported by a decline in crude oil prices. Fears of oversupply sent Brent price below $75.
Despite deteriorating ratings by JPMorgan, the bulk of companies tracking the airline remain optimistic. 71.9% advise buying, compared to 18.8% who advise holding and 9.4% who choose to sell. This optimism is also reflected in the target price. Bloomberg consensus sets it at €2.38 per share. That is, it gives you 30% potential.
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