UBS has increased its target price for IAG shares to 280 pence from 210 pence, indicating a potential upside of 17% for the Anglo-Spanish airline group.
The firm maintains a neutral rating on the stock, citing IAG"s strong operating performance. Operating profit rose by 15.4% to 2.01 billion euros, surpassing the consensus estimate of around 1.8 billion euros.
In the third quarter, IAG reported a 7.9% increase in revenue, reaching 9.33 billion euros. UBS has also adjusted its earnings per share (EPS) forecasts for 2024 and 2025, raising them by 11% and 29% respectively.
The group expects a solid financial performance for the remainder of the year, which reinforces investor confidence in its operational strength.