Deutsche Bank sees more than 35% upside in International Consolidated Airlines Group SA (LSE:IAG) as the bank's analysts expect 2026 operating profit of around €4.3 billion.
The German bank, in a note, raised its price target to 645p, from 540p, versus the current market price of around 470p, and repeated a ‘Buy’ recommendation.
DB analyst Jaime Rowbotham, meanwhile, cautioned that "the volatility caused by the on/off conflict in the Middle East is making it hard to be precise with this year’s earnings outcome".
Even so, Deutsche Bank remains confident that IAG’s operating margin will stay within its 12%-15% target range, a level the broker described as high by airline industry standards.
