IAG shares continue to soar and are getting closer and closer to the 3 euro level. Its revaluation during the year already exceeds 43% and 30 points of this increase were achieved only in the last three months.or 70%. It is in fact, over this period, the most bullish company on the Ibex 35.
The new fall in oil prices (the price of crude oil fell by more than 5% this Monday, once again suffering the red figures of the year) boosted the action of the airline, which once again established new highs for the year and placed its price at 2020 levels. in full decline due to the onset of the pandemic.
The firm has accumulated four consecutive months of increases, including October. This month, IAG once again records increases in the Spanish stock market of more than 3% and ranks sixth in the ranking of the 10 largest increases in the Spanish index since the beginning of October.
The increase that IAG accumulates on the stock market in 2024 would, if the year ends at that time, the company’s best annual results in over a decade. Specifically since 2013, when the Spanish-British company doubled its market value. But analysts still do not believe that the company’s stock market participation has any signs of ending in the coming months: they are betting on its shares an additional upside potential of 16%.
The expert consensus that collects Bloomberg sets the airline’s average stock market value at 2.95 euros, although up to 13 of these analyst banks already set the price target for IAG shares at 3 euros or more. The tourism company has no longer been listed at this level since March 2020. In fact, The most optimistic valuations even see the company at 5.39 euros by title. This price not only leaves it with a potential upside of 110%, but would also allow its stock to return to its pre-Covid-19 epidemic levels.
The Renta 4 team recently revised its valuations and joined this group of experts who see IAG above 3 euros per share. From the investment bank, they justify their valuation in the good operational evolution of the company and the best prospects. In addition, they considered the withdrawal of Air Europa’s offer positive: “This was a correct decision considering the requirements imposed by the European Commission. However, we believe that IAG has with good growth options, both organically and through acquisitions (privatization of TAP). Although IAG is in an intensive investment process, we see it as having the opportunity to improve shareholder remuneration, including a share buyback plan,” they say.
Quarterly results
On November 8, IAG will announce the results for the third quarter of the year, that is, the data collected over the summer, which tends to be the best results report of the year. And experts expect him to announce the highest profit ever made by the airline during this period. Concretely, they project a net profit from July to September of 1,307 million euros, improving the already historic figure of the previous year by 6%.
