British Airways owner International Consolidated Airlines Group SA (LSE:IAG) shares bounced 3.4% higher to 378.5p as analysts expressed confidence that a stronger final quarter is coming.
Stock in the Anglo-Iberian carrier came under pressure on Friday after third-quarter earnings fell slightly short of expectations and the group stopped short of announcing a new share buyback, with the shares dropping almost 11%.
Deutsche Bank described the results as showing “exceptional performance still”, noting that IAG remained on track for operating profit margins of 15% for the year.
However, the bank acknowledged that the downward pressure on the shares reflected "no beat and raise this time around and patience needed on the buyback".
JPMorgan also pointed to disappointment around the lack of a buyback announcement but kept its ‘overweight’ rating and said capital returns were still expected early next year.
"Our base case [is] a €1.5 billion buyback (8% of market cap) announced at the FY25 results," the US investment bank said.
Citi, meanwhile, said the pullback did not change its overall view. "The EBIT miss was minimal (-2%)… management continuing to imply significant cash returns are coming in 2026."
Valuations were seen as attractive by all three firms, with Deutsche Bank citing a target price of 475p (15% above the current share price) and JPMorgan forecasting more than 30% upside with its €5.50 December 2026 price target.
In addition to the financials, analysts noted the company’s recently announced deal with SpaceX to roll out Starlink Wi-Fi across all five airlines in the group.