IAG (Iberia) fails to agree with analysts. In fact, today the market value has two clearly contrary recommendations. Among the best, Deutsche Bank stands out for whom the airline holding is a purchase with object clearly upwards in the London Stock Exchangein its change, of 4,786 euros per share.
This assumes that the German entity grants a potential to the value of no less than 53.37% From its closing price yesterday.
His analyst Jaime Rowbotham emphasizes that they value «the comments made yesterday by the financial director of Virgin Atlantic, who mentioned «Signals that American demand is slowing down», What seems to have fed fears that the weakness of American domestic demand will lead to a weaker demand on transatlantic routes. «
A fact, that of future perspectives, which had already clearly impacted the value with the publication of Delta Airlines results, although it is also true that there are some market experts who clearly consider their resilience to this decrease in the offer and that will be compensated by China’s trips to Europe.
They highlight from Deutsche that «the rates we have been tracking for 60 days to travel in May (all airlines and geographies) show some of the softest trends to date, which supports the idea of a broader soft period for the demand for air trips.»
However«On the transatlantic route between Europe and North America, prices seem more solid to/from the United Kingdom. We believe that this is due to the unusual capacity of capacity in the United Kingdom that, unlike other European countries, is prepared for demand contraction instead of growth this summer, «they point out.
Completely contrary is Bankinter’s opinion about value. And it is that for the firm analysts «IAG will be affected, just like the rest of the sector, by higher risks, lower economic growth and greater inflation perspectives. In coherence, we reduce our occupation rate estimate, which has direct involvement in its future benefits «
And this completely changes your expectation, while changing your recommendation that reduces two steps, to sell from buying and also drastically cut its target price up to 5 euros per share from 3.10 precedents, which is a slight negative potential for value.
And they stand out a potentially high impact of the commercial war on economic growth, and, therefore, on the air sector. They estimate that their capacity (seat-kilometers offered) and the occupation will be resenting, predictably in the next quarters. The commercial war has direct implications in terms of economic growth, inflation and benefits. In addition, they claim that this has an impact on airlines.