Shares of British Airways owner International Consolidated Airlines Group SA (LSE:IAG) rose almost 5% after JP Morgan performed a double upgrade of stock in the UK carrier.
It has gone to 'overweight' from 'underweight', setting a price target of €2.50. This adjustment indicates a substantial 50% potential upside from the company's recent closing price.
The American investment bank said it previously held concerns that high capacity could hit revenue and earnings.
However, its latest analysis suggests that these fears may have been overblown. According to JPM, IAG's 2023 earnings demonstrate resilience, likely averting any significant decline this year.
This reassessment opens the door for IAG to surpass consensus expectations, even as it enters a phase of increased operational and capital expenditure.
In afternoon trade the stock was changing hands for 148.55p, up 6.7p.