IAG: BarCap maintains 'overweight' rating

(CercleFinance.com) - Barclays Capital has reiterated its "overweight" rating on IAG (International Airlines Group), along with its target price of 780 pence, believing that there the airline has an efficient and disciplined capital allocation.


Although the market seems a bit disappointed by the performance of costs and concerned about the company's growth capacity, annual results and the outlook for 2018 have underlined the strength of IAG's business model and its strategy, the broker believes.

For 2018, BarCap thinks that the combination of growth in capacity, robust demand, pricing and better non-fuel costs, will boost earnings growth, despite headwinds in terms of fuel.

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