British Airways owner International Consolidated Airlines Group SA (LSE:IAG) has been added to JP Morgan’s favoured list in the transport sector in 2025 with a target price upgraded to 500c from 340c.
EasyJet’s target is raised to 750p from 660p with Ryanair bumped up €25 from €19, but it's IAG that is the standout, says the US bank in what is likely to be a mixed year for the sector
Freight volumes are set to weaken, suggests JP Morgan, but airlines should be insulated and get an earnings boost from a fuel tailwind and resilient pricing sustained by a benign demand-supply balance.
IAG especially should benefit from these trends, suggests the bank, and is the most compelling of its overweight airline recommendations due to solid pricing and strong free cash flow that should lead to shareholder cash returns with a re-rating potential.
The airline was one of FTSE 100’s best performers today rising by 3.6% to 272.6p, its highest share price for three and half years.