IAG Share Price Forecast - Buy, Sell or Hold?

Jitanchandra Solanki
10 Min read

Shares in International Consolidated Airlines Group SA (IAG), the owner of British Airways, Iberia, Vueling and others, collapsed to twelve-year lows during the pandemic before rallying nearly 160% higher.  

With economies starting to reopen and travel restrictions coming to an end, it is now a very interesting time for airline stocks such as IAG.  

In this article, we go through the IAG share price forecast for this year and beyond, what brokers and analysts are forecasting for the stock and how to invest in IAG shares with competitive commissions.

IAG Share Price UK

 

IAG Share Price Broker Forecast 

According to TipRanks who have polled 14 analysts in the last three months for their IAG share price forecast UK, there are 7 buy, 5 hold and 2 sell ratings on the stock.  

Analysts at both UBS and Citigroup are bullish on the stock and currently have a GBX 220.00p price rating on the IAG’s share price. This represents around 37% upside potential from its current levels. However, analysts at BNP Paribas have a sell rating on the stock with a target price of GBX 150.00p.  

Source: TipRanks, 27 January 2022 

While there are currently more buy ratings for the IAG share price forecast, it doesn’t mean the share price will go up immediately. There are more analysts who have a hold rating on the stock than a sell rating which is likely due to the Omicron Covid-variant restricting some travel and therefore the profitability of airlines.  

Interestingly, the sell ratings on the stock have GBX 150.00p as the lowest price target. At the time of writing, the stock was trading around GBX 158.00p which is just above the lowest price target of the analysts who have been polled regarding an IAG share price forecast.  

Invest in the world’s top instruments

Thousands of stocks and ETFs at your fingertips

 

IAG Shares Forecast & History 

The IAG share price collapsed during the pandemic – as did most other airline stocks and travel-related stocks. By the end of 2020, IAG’s revenue stood at only 30% of what they made in 2019. The third-quarter results of 2021 also disappointed the market as IAG reported they were at 43.4% capacity compared to the same time the year before.  

The disappointing results in capacity, revenue and profits are unsurprising given the Covid-pandemic restrictions. Also, the rise of other Covid-variants hit the sector just as things were starting to pick up. Unless another pandemic is around the corner, the bad news and results may be starting to bottom out. 

According to Fitch Ratings, the global revenue passenger in kilometres (RPK) is not expected to reach pre-pandemic levels until 2024. However, it is set to grow over the next few years which is important when analysing the IAG share price forecast 2025.  

Source: Fitch Ratings, 27 January 2022 

As air travel picks up this is likely to translate into more revenue for IAG which operates a variety of different airlines including British Airways, Iberia, Aer Lingus, Iberia Express, Vueling and Level. The combination of having a full-service airline such as British Airways and a low-cost airline such as Vueling could be a good diversification.  

This is because low-cost airlines provide a lot of volume of bookings but with lower margins. The full-service airlines mostly make their profits from serving business class customers. In fact, some flights will operate at a loss from their economy passengers but reap the rewards through high yielding customers in business or first class.  

Source: McKinsey, 27 January 2022 

The pandemic forced businesses to move remotely and connect via web conferencing applications such as Zoom. This hurt airlines the most and business travel ground to a halt. While business travel is still expected to grow in 2022 it may not reach peak levels until 2024.  

IAG Share Price Forecast Buy or Sell Analysis 

As most analysts remain bullish on the long-term prospects of IAG’s share price, it fits into the style of value investing rather than growth investing. This is important to know as value-based stocks require more patience and a longer-term outlook rather than growth-based stocks.  

At the start of 2022, global stock market indices crashed lower which sent a lot of shares into the potentially undervalued stocks category. This makes it an interesting time for those stocks that have been battered by the pandemic such as airlines like IAG.  

Source: Admirals MetaTrader 5, IAG, Monthly - Data range: from 1 Aug 1990 to 27 Jan 2022, performed on 27 Jan 2022, at 8:30 am GMT. Please note: Past performance is not a reliable indicator of future results. 

In the above long-term, monthly chart for IAG’s share price the stock has remained in a consolidation between the two black horizontal lines from GBX 718.025 and GBX 85.00. The share price crash during the pandemic stalled around the lower end of this range before rallying nearly 160% higher.  

Historically, the share price has rallied from the bottom of this trading range and investors will be looking for confirmations of buyers building positions from these levels to help time their investments.  

What was IAG highest share price in the long term? The all-time high was GBX 505.86 recorded in May 1997. The second-highest price for the stock was recorded in June 2018 at GBX 481.98. 

Is International Airlines Group a good stock? IAG operates some of the biggest airlines in the world including British Airways, Aer Lingus, Iberia and Vueling among others. It’s also part of the FTSE 100 index which represents the largest 100 shares by market cap listed on the London Stock Exchange.  

Advanced Trading Webinars

Discover the latest trading trends, get actionable strategies and enjoy complimentary tools.

 

IAG Share Price Forecast Timing 

Many stock market investors use fundamental analysis to analyse the big picture and where the market could move to in the future, combined with technical analysis to help time when to build positions.  

The Technical Insight Lookup indicator which can be found in the Premium Analytics section from the Admirals Trader’s Room provides real-time, actionable technical analysis trading ideas on thousands of stocks from around the world.  

Source: Admirals Premium Analytics, 27 January 2022 

For example, the screenshot above shows all the technical events happening on the IAG share price at the time of writing. The list is categorised into short-term (2 – 6 weeks), intermediate-term (6 weeks – 9 months) and long-term (more than 9 months).  

The 28 technical events it shows can all be viewed in more detail simply by clicking on one of the events. You can then read an explanation of what is happening on the stock from a technical perspective.  

It’s a great way to help you find technical analysis trading and investing ideas, while also learning more about chart analysis. The combination of fundamental analysis and technical analysis patterns can be very powerful. 

You can access this tool from the Admirals Premium Analytics section! 

Free analytical tools

Tap into a wealth of exclusive resources at the touch of a button

 

How to Invest in IAG Shares 

If you are interested in investing in IAG shares then you can do this from a variety of different accounts that Admirals has to offer: 

  • Invest.MT5 Account. This account allows you to buy shares and ETFs from 15 of the largest stock exchanges in the world.  
    • Enjoy a low minimum commission of just 0.1% when trading UK shares, with a low minimum transaction fee of just 1 GBP which can be useful for small accounts. 
    • Trade long and short! With CFDs, you merely speculate on the price movement of the market rather than owning the underlying shares.  
    • Trade on margin! For retail traders, you can open a position in IAG with just 20% of the full investment needed to be held as margin. This can amplify profits and losses so be careful! 
    • Enjoy a low minimum commission of just 0.1% when trading UK shares, with a low minimum transaction fee of just 1 GBP which can be useful for small accounts. 
  • Demo Account. You can open an Invest.MT5 and Trade.MT5 demo account for FREE and test out all of the features for yourself until you are ready to go live.   

Regardless of which account type you open, you will have instant access to the world’s most popular trading platform MetaTrader 5. This can be used on desktop, web or mobile.  

Why Invest in IAG shares with Admirals? 

✔️ Admirals is authorised and regulated by the UK Financial Conduct Authority (FCA) and other well-known financial regulators. 

✔️ Open an Invest.MT5 account to invest in stocks and ETFs to build a long-term portfolio and a passive stream of income through dividend investing! 

✔️ Invest in stocks and ETFs from 15 of the largest stock exchanges in the world from just 0.02 USD per share on US stocks and 0.1% commission on UK stocks! 

✔️ Access real-time, actionable investing ideas through the Premium Analytics Technical Insight Lookup indicator.  

Click on the banner below and get started today! ▼▼▼ 

Invest in the world’s top instruments

Thousands of stocks and ETFs at your fingertips

 

 INFORMATION ABOUT ANALYTICAL MATERIALS:  

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following:  

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research. 
  2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 
  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest. 
  4. The Analysis is prepared by an independent analyst (Jitan Solanki, hereinafter “Author”) based on personal estimations. 
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis. 
  6. Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.

 

TOP ARTICLES
How to Find Recession Proof Stocks
With high inflation, rising interest rates, and ongoing conflict in Europe, there are many wondering whether we will witness a recession in 2022. And, if there is a recession, what will that mean for the stock market? Are there any stocks that do well during a recession?In this article, we will exam...
What Are the Best Electric Vehicle Stocks to Watch?
The electric vehicle (EV) revolution is well under way around the world, with sales of EVs rocketing in recent years. The global desire to clean up our act when it comes to carbon emissions makes it seem that this trend will continue in the future. But which companies stand to benefit?In this articl...
Top Gaming Stocks to Watch in 2022
The video game industry is a fast-growing market that could have a lot of potential to grow in the coming years.What makes the video game industry and hence gaming stocks so fascinating, is that this tech sector brings together culture, entertainment and overall technological development into one th...
View All