International Consolidat... Share Discussion Threads

[m1k3y1] 06/12/2019 18:30

IAG a new 'buy' for Peel Hunt on sterling, Brexit and fleet hopes International Consolidated Airlines Group PLC (LON:IAG) is forecast to benefit from next week’s UK general election, bringing fairer weather for sterling and possibly Brexit, leading Peel Hunt to endorsed the British Airways’ owner with a ‘buy’ rating. Helped by this recommendation and the broker setting a price target of 665p, IAG shares rose 1% to 553.6p in mid-morning trading on Friday. Peel Hunt’s analysts highlighted three positive factors for the Anglo-Iberian airlines group, if the UK election result delivers a Tory majority as polls indicate. “The election result predicted by the polls will lead to a further recovery in sterling and a significant translational upgrade to forecasts,” the analysts said in a note to clients. The pound this week soared to its highest level since May, cresting above $1.3100 as anticipation grew for an election victory for Boris Johnson’s party. Pollsters reckoned the Conservatives were ahead of Labour by seven points on 42% to 35%, according to a survey by ICM published on Wednesday, which would increase the chances of Brexit being followed through, bringing some short-term certainty back to the economy. “Whilst Brexit remains a challenge, concerns over low EU-27 ownership can be alleviated and the EU is offering a grace period,” the analysts said, with airline companies set to have seven months to comply on ownership once Britain leaves the EU. IAG stopped making its shares available to non-EU investors this year, seeking to comply with strict EU rules that will require Europe’s airlines to be 51%-owned and controlled by EU entities, in order to be able to operate between any two airports in the European Economic Area (EEA). Peel Hunt's analysts also said that updating its fleet of aeroplanes will make a “disproportionately large improvement in fuel efficiency” for IAG, which should result in further upgrades, “even though a proportion of savings are likely to be shared with customers and higher carbon costs”. IAG was also raised to ‘outperform217; by MainFirst on Friday, which set a target price of 675.18p. The same broker also upgraded rival Ryanair PLC (LON:RYA) and raised the price target for easyJet PLC (LON:EZJ).

[chiefbrody] 06/12/2019 15:22

And Labour and the LD's getting a hammering next week will help too,

[chiefbrody] 06/12/2019 15:22

Yup its not like the Brokers are all negative like u say.Maybe the big fund managers/investors just stay clear of this sector. Not the safest by any means.Still. Double digit div increases possible for years to come so not all doom and gloom lol.

[montyhedge] 06/12/2019 15:12

Agree, but no analyst has a Sell recommendation. A re rating is coming, these will over 725p next year and the p.e still single digit.

[chiefbrody] 06/12/2019 15:02

Its not just Easyjet Monty. Or Ryanair for that matter. Apples and Pears as far as the market is compared.I wonder what P/E IAG's peers (Lufthansa, AF, KLM etc etc) trade on. Be surprised if their P/E is lower than IAG.I believe the US airlines trade on a lot higher multiple and their valuations dwarf IAG.Market just does not like IAG.

[montyhedge] 06/12/2019 14:20

Yes certainly surprised me the figures, November a quite month normal. 725p next year.That's why no analyst I can see has a sell on IAG.

[cyberian] 06/12/2019 14:18

I certainly did not think the figures would be anywhere near what they achieved...so more mileage expected on the upside, hopefully. We were at 575p ish just before the shares went XD for a 9.88p net divi which some would have re-invested...well done for those that followed.

[montyhedge] 06/12/2019 14:00

575p Monday on those T and C results out today, superb.

[montyhedge] 06/12/2019 13:57

A lot further to go.

[demo trader] 06/12/2019 13:43

Chickened out at 559.2p

[montyhedge] 06/12/2019 13:21

Yes hopefully decent push the market even higher, it's tough being a bear especially in IAG, this year 53p net dividends what a cash cow.

[demo trader] 06/12/2019 13:20

NFP at 13.30

[montyhedge] 06/12/2019 13:18

Brilliant figures, Tory win, pilots accept, then 615p by Xmas.Easy really.

[montyhedge] 06/12/2019 12:37

Was not due until 9th December, good figures. Why bring out early, traders at lunch, been caught out, lol

[montyhedge] 06/12/2019 12:35

Was not due until, good figures.No wonder it's come out early.Better than I forecasted.

[demo trader] 06/12/2019 12:33

https://uk.advfn.com/stock-market/london/international-consolidat-IAG/share-news/International-Cons-Airlines-Group-IAG-Traffic-and/81299739

[montyhedge] 06/12/2019 08:53

Seems a big difference EasyJet p.e 15.17. IAG normalise p.e 5.5.Forecast to be 4.41. Clearly investors favour EasyJet.

[montyhedge] 06/12/2019 07:52

Yes no sells by analyst's incredible.

[demo trader] 06/12/2019 07:25

g.m. Peel Hunt has 665p target Out of 12 analysts 8 on strong buy 3 on buy 1 neutral have at 545p

[fjgooner] 05/12/2019 22:51

montyhedge - please try to be a more decent person. You'll feel better for it.

[montyhedge] 05/12/2019 21:47

After the landslide for Tories next week, of course no sane person would vote for Corbyn, the Santa Rally will start, then we get the yes vote to accept deal from pilots. 615p by Xmas.T and C on Monday not expecting much for November, but all in this low shareprice now.

[applepieinthesky] 05/12/2019 15:44

Idt say you should know about the BALPA vote around the time the Tories get a bashing next Friday I just hope Monty doesn't take if out on his Ladyboy friend they don't want any injuries before they set off to Clacton for Christmas.

[montyhedge] 05/12/2019 08:24

Monday 9th Dec, Traffic and Capacity report, not expecting to much for November? If half decent should give another fillip to the shareprice.