Report
EUR 200.00
For Business Accounts Only
In our view, the cut made to some operating targets (growth in ASKs of +3.4% YoY in 2020/23 vs. +6% previously; annual growth in EPS of +10% vs. +12% previously) is in line with market expectations and our estimates. Moreover, the company maintains a message that we believe is appropriate, as it focuses on cash generation. Specifically, the company’s estimated cash outflows 2020/23 are now lower (€-500 M due to lower Capex; as a result of lower capacity levels) and below our estimates in terms of contribution to the pension plan (€~500 M annually vs. € 600 M BS(e)), which backs cash generation (average LFCF target of € 2.1 Bn for 2020/22) and our valuation. Additionally, it will allow IAG to participate in the consolidation of the sector, while maintaining an attractive shareholder remuneration policy.
IAG: CMD - FOCUSED ON CASH (ANÃLISIS BANCO SABADELL)
IAG. CMD focused on cash generation. BUY.In our view, the cut made to some operating targets (growth in ASKs of +3.4% YoY in 2020/23 vs. +6% previously; annual growth in EPS of +10% vs. +12% previously) is in line with market expectations and our estimates. Moreover, the company maintains a message that we believe is appropriate, as it focuses on cash generation. Specifically, the company’s estimated cash outflows 2020/23 are now lower (€-500 M due to lower Capex; as a result of lower capacity levels) and below our estimates in terms of contribution to the pension plan (€~500 M annually vs. € 600 M BS(e)), which backs cash generation (average LFCF target of € 2.1 Bn for 2020/22) and our valuation. Additionally, it will allow IAG to participate in the consolidation of the sector, while maintaining an attractive shareholder remuneration policy.
Underlying
International Consolidated Airlines Group SA
International Airlines Group is an international scheduled airline and global premium airlines. Co.'s principal place of business is London with significant presence at Heathrow, Gatwick and London City airports.
Provider
Sabadell
Francisco Rodriguez
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