Upcoming results from British Airways owner International Consolidated Airlines Group (LSE:IAG) could be a catalyst to spur more City analysts to upgrade earnings estimates, JPMorgan reckons.
Having recently double upgraded the stock earlier this month, the investment bank told clients it was putting IAG on 'positive catalyst watch' ahead of the first-quarter update on 10 May.
Even though Q1 is usually the smallest quarter financial, a "more encouraging" environment for flight pricing is perceived for the current period and the summer months, although the bank only expects passenger unit revenue to pick up "slightly" this year.
JPMorgan's full year earnings forecast is for €3.7 billion, up from €3.5 billion last year and 8% higher than the Bloomberg analyst consensus.
This view is supported by the increase in passenger unit revenue growth and strategic investments, positioning IAG favourably against competitors.
A December 2025 price target of €2.50 suggests a roughly 40% upside, with IAG trading at a significant discount to its pre-pandemic valuation, down almost 60% from early 2020.
This re-rating reflects the bank's confidence in IAG's strategic direction, including British Airways' recovery and operational improvements, which are expected to lower disruption costs and bolster resilience for the upcoming summer operations.