Report
EUR 400.00
For Business Accounts Only
The lack of visibility forced IAG to carry out a rights issue (increasing shares by 1.5x), which along with the cash burned in 2020 (€~5.5 Bn BS(e)) and the revision of estimates (-54% in 2021-22 in EBIT), lead us to cut our T.P. by -49% to € 1.80/sh. The +69% upside means we maintain our BUY recommendation, with the results delivery and news on a possible vaccine being key in the short term. Following the rights issue the company’s financial situation is relatively comfortable (>€ 9.5 Bn of liquidity as of YE2020 BS(e)), but a rebound in business activity is essential if the company does not want to find itself needing more liquidity in 2H’21. Our base-case scenario assumes some normalisation (in 2023 IAG will be -15% smaller than in 2019), with cash being generated in 2021.
IAG: TURBULENCE FROM COVID (ANÁLISIS BANCO SABADELL)
A bet on relative normalisation. BUYThe lack of visibility forced IAG to carry out a rights issue (increasing shares by 1.5x), which along with the cash burned in 2020 (€~5.5 Bn BS(e)) and the revision of estimates (-54% in 2021-22 in EBIT), lead us to cut our T.P. by -49% to € 1.80/sh. The +69% upside means we maintain our BUY recommendation, with the results delivery and news on a possible vaccine being key in the short term. Following the rights issue the company’s financial situation is relatively comfortable (>€ 9.5 Bn of liquidity as of YE2020 BS(e)), but a rebound in business activity is essential if the company does not want to find itself needing more liquidity in 2H’21. Our base-case scenario assumes some normalisation (in 2023 IAG will be -15% smaller than in 2019), with cash being generated in 2021.
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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