IAG: Is the Sky Still the Limit? Shocking Stock Price Plummet or Just a Bump in the Road?
Hold onto your hats, folks! In 2024, IAG’s stock skyrocketed, blasting off nearly 100% and claiming its throne as the FTSE 100’s high-flying champion! But just when we thought the skies were clear, turbulence hit in 2025—down by nearly 20% since February’s peak! Could this be the end of the joyride for IAG shareholders, or is the aircraft just recharging for another soaring adventure?
ANALYSTS WEIGH IN: What’s Next for IAG Shares?
Today, IAG shares are cruising at £2.94 (as of March 19), but what does the future hold? The market chatter is electric! Analysts remain cautiously optimistic, with a median 12-month price target soaring to £4.03—an eye-popping 37% jump! But beware—beneath that shiny surface lies a chaotic mix of expert opinions!
Here’s how the analyst battleground breaks down:
| Recommendation | Number of Analysts |
|---|---|
| Buy | 6 |
| Outperform | 7 |
| Hold | 4 |
| Sell | 1 |
| Strong Sell | 0 |
On one side of the ring, Panmure Liberum analysts are seeing dollar signs, projecting IAG shares could catapult to £5 next year due to resilient travel demand and plummeting jet fuel prices! But don’t get too comfy—the doom and gloom from Barclays, cutting their forecast to a floor-level £2.50, brings chills with its warnings of fierce competition from budget airlines and ominous profit warnings from US competitors.
THE VERDICT: Can IAG Still Take Flight?
With bullish forecasts echoing my sentiments, could IAG achieve that coveted £5 target? Sure, it may sound ambitious, but opportunities for growth are still on the table! The stock is trading at a jaw-dropping low forward price-to-earnings (P/E) ratio under 5.5, making it a steal compared to the FTSE 100 and other airlines like easyJet and Wizz Air, which boast lofty multiples of 6.9 and 7.1.
IAG is also cashing in on a massive £7bn modernization scheme at British Airways, a two-year spend-up storm that’s revolutionizing IT and staffing levels!
Last fiscal year, IAG stunned everyone with a 22% jump in operating profit, hitting a record €4.3bn and smashing analyst predictions like a crazy airshow! But there’s a storm brewing: business travel demand is as shaky as a mid-flight turbulence. With virtual meetings now the norm, will corporate travel ever bounce back?
Nevertheless, shareholders can get excited! There’s a €1bn share buyback plan locked and loaded for the next year, AND dividends are back in the game!
All eyes are on IAG: Will it stabilize for a smooth ride or crash-land into turbulence? Only time will tell!
