IAG: Best Year on the Stock Exchange in its History

15 nov

International Airlines Group (IAG) (Ticker AT: IAG.ES), owner of airlines such as Iberia, British Airways and Vueling, has set a milestone on the Ibex 35 by positioning itself as the most bullish company on the index in 2024. With a stock market growth of more than 61% since January, IAG has recorded its best year since it began trading. This does not mean that it has reached all-time highs, but rather that it has had its best stock market performance in more than a decade.

The momentum is attributed to its strong third quarter financial results, in which it reported a net profit of €2.34 billion, up 8.8% from a year earlier. This performance was aided by high travel demand, especially on transatlantic routes, and efficient operational management.

Analyst Recommendations
Firms such as Bank of America and Barclays have upgraded their valuations for IAG. Bank of America raised its price target to 3.6 euros per share, reflecting a 29% upside potential, while Barclays increased its projection to 3.20 euros. Both highlight strong margins and solid cash generation, supported by a €350 million share buyback strategy and dividend declaration.
Bloomberg Intelligence highlights the increase in margins thanks to British Airways' operational efficiency and high demand on North American routes. However, recovery in Asia-Pacific remains slow.

Sector Leadership
IAG not only leads the Ibex 35, but also the European travel industry. According to the Stoxx 600, it is the most bullish company in the segment, with a 17-point lead over its closest competitor.

Technical Aspect
The stock is currently in a strong bullish range structure. Since the end of August it has been in an expansion cycle where the crossover of averages has marked this bullish strength. The RSI is currently highly oversold and very close to the highs of the year at 2.881, so it would not be unusual to see in the short term a correction within the channel in the direction of its average and thus close that tremendous gap generated last week. In this way, it could support its price above 2.605 euros to continue this rise. Another option could be to extend this rise to around 3-3.10 euros and make the correction indicated since the strength of the upward volume of the other day is very large and currently there is not enough volume to be considered a correction of any kind.
S1:2,544
S2:2,183
S3:1,8925
R1:2,900
R2:2,609
R3:2,134

Conclusion
The combination of robust financial results, investor confidence and effective operating strategies consolidate IAG as a benchmark in the Spanish stock market and the European airline industry. Its recovery and leadership stand out in a challenging economic environment.

Ion Jauregui - ActivTrades Analyst




*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.

All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.

Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.