IAG: Stifel downgrades stock
(CercleFinance.com) - Stifel has downgraded its recommendation on IAG shares from "buy" to "hold", slashing its target price from 3 to 1.
7 euros, expecting a more limited EBIT this year due to operational problems at British Airways thwarting the recovery this summer.
"With sector demand and cost headwinds starting next year onwards (see our sector view), IAG's EBIT recovery looks set to be delayed to FY-27," the broker adds, which reduces its EBIT estimates for 2022 (-45%) and 2023 (-24%).
While a return to positive FCF also seems unlikely in the near term, Stifel sees little risk of a capital increase and remains positive about a potential acquisition of Air Europa by the Anglo-Spanish airline.
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