British Airways owner International Consolidated Airlines Group SA (LSE:IAG) is the only airline operator with forward earnings momentum, according to the analysts at Panmure Liberum.
Second quarter numbers today were well ahead of consensus, it adds, in sharp contrast to its peers.
“The resumption of dividends highlights the strength of cash generation and the balance sheet.
“Management’s outlook for the year remains positive and we raise our
already above-consensus forecasts modestly.”
The broker said IAG is the only airline where it has raised forecasts in this results round, adding that the group's current rating “looks wholly inconsistent with its financial performance and outlook”.
But with an unchanged (and punchy) target price of 450p, said the broker.
Shares rose 7% to 171.2p.