British Airways and Iberia owner International Consolidated Airlines Group SA (LSE:IAG) has seen its price target raised, with analysts at Deutsche Bank repeating a 'Buy' rating.
Analysts at the German bank are expecting to maintain a 15% EBIT margin through to 2027, and as such the 2025 EBIT forecast remains unchanged at €4.9 billion.
DB now assumes average annual revenue growth of 4% over the following two years.
“More importantly, we now assume IAG can sustain the ~15% margin we expect in 2025 over the next 2 years, on average rev growth of 4% pa,” Deutsche Bank said in a note.
Analysts noted that recent margin expansion has been helped by falling fuel costs and higher fares, though they cautioned that both trends may normalise.
The bank sees pricing recovering in 2026, supported by strong demand and limited premium cabin supply on some long-haul routes as analysts anticipate support with self-help drivers, including British Airways’ transformation programme and Iberia’s Plan de Vuelo.
DB's 'Buy' rating comes with an upgraded target price of 500p, from 475p.
In London, the airline share traded at 380.4p on Monday, down 1.83% on the day.