IAG: Stifel downgrades stock
(CercleFinance.com) - In a report on European airlines and airport operators, Stifel has downgraded its rating on IAG (International Airlines Group) from "hold" to "sell", having reduced its corresponding target price from 1.
5 euro to 1 euro.
According to the broker, the pre-pandemic levels of margins and free cash flow currently appear "increasingly unattainable" for the airline that operates the British Airways and Iberia banners.
More broadly, Stifel warns that the 2023 environment for the sector, with the "upcoming downturn into 2023 might be harsher than expected by most, as it will not be a normal one: we expect demand weakness and cost inflation (fuel/labour) at the same time".
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
5 euro to 1 euro.
According to the broker, the pre-pandemic levels of margins and free cash flow currently appear "increasingly unattainable" for the airline that operates the British Airways and Iberia banners.
More broadly, Stifel warns that the 2023 environment for the sector, with the "upcoming downturn into 2023 might be harsher than expected by most, as it will not be a normal one: we expect demand weakness and cost inflation (fuel/labour) at the same time".
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.