MARKET REPORT: Shares in British Airways 'to keep gaining altitude'
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British Airways owner IAG has seen its share price go on a journey this year, almost doubling in value, and Deutsche Bank thinks that journey has only just begun. The German bank’s analysts said capacity constraints on transatlantic flights should leave IAG able to lift prices into 2025.
This, they said, is supported by early evidence from the bank’s fares tracker and underpinned by the macro-outlook for the US, the UK and Spain. The analysts see scope for another year of above-consensus earnings growth in 2025. As a result, they lifted their rating to ‘buy’ from ‘hold’ and hiked their price target to 400p, propelling IAG up 2.1 per cent, or 6p, to 288p.
After benign US inflation data opened the way for a final round of rate cuts in 2025, the FTSE 100 closed 0.26 per cent, or 21.26 points, higher at 8301.62, while the FTSE 250 was virtually flat – down 0.49 points, to 20,973.45. On the rise: Shares in British Airways owner IAG have almost doubled in value this year and are now tipped to climb even higher.
Among other blue-chip gainers, British American Tobacco added 1 per cent, or 39p, to 2999p after reaffirming full-year guidance for 2024, helped by a stronger second half driven by investments in its US operations and innovation in its new categories portfolio.
