The advance of the fifth wave of coronavirus, the growing fear of its Delta variant and, as a consequence, the increase in restrictions in some countries have slowed the small takeoff with which IAG began the holiday season.
And is that despite the significant rebound that was seen during the first days of July , this week already registers losses of 3.5%. The airline managed to stay by the hair above 2 euros, at the close of yesterday.
The Anglo-Spanish company closed on Wednesday with a price of 2.01 euros , levels that had not been seen since February, completely erasing the rises it was drawing in July just a week ago. In total, IAG still scores 12.2% during the year.
Of course, the latest losses expand its average potential to 34.6% for the next 12 months, according to the 15 investment banks that follow the evolution of the company from FactSet. In other words, IAG’s target price for the consensus is 2.70 euros . An average that ranges from 2 euros calculated by Banco Santander, the most pessimistic, to 3 euros estimated by Stifel Nicolaus, the most optimistic.
“We are surprised that IAG securities show a worse relative performance compared to their main European comparables and compared to the companies most dependent on mobility that we cover,” say the experts at Renta 4, where the target price is at 2 , 82 euros.
With a purchase council for airline titles, Iván San Felix, Renta 4 analyst, defends that “greater visibility in terms of recovery, leadership in the areas in which it operates, liquidity position and discipline in management are factors that should support its price, which has lost more than 50% since the beginning of 2020. “
However, the average price that investment firms estimate for IAG in the short term is still a long way from retaking the 5.11 euros that they presented on February 19, 2020, just one day before the pandemic hit the market for values and, particularly harshly, the tourism sector.
To overcome the Covid- crash , its shares would need a boost of more than 154% from its last price, and must rise an additional 89% once they reach the average valuation given by the experts.
Still, analysts conclude that it is a good time for investors to add IAG securities to their portfolios. In total, 64% of the analysis houses that study the Spanish company recommend buying, 36% believe that the best thing for the moment is to keep their shares and none of the analysts advises to sell. Based on the algorithm that the Economist uses with FactSet data, the current recommendation is clearly to buy .