RBC lifts IAG price target to 500p on long-haul capacity

THE NEWS: RBC Capital Markets raised its price target on International Consolidated Airlines Group SA (LSE:IAG) to 500 pence per share, up from a previous target of 465 pence, and the shares closed at 418.70 pence, implying an upside of about 22 percent once dividends are included.

DETAILS:

• RBC analysts Ruairi Cullinane and Jakub Glinkowski kept an Outperform rating on IAG.
• The analysts described IAG as their preferred play on constrained long‑haul capacity.
• IAG is the owner of British Airways and Iberia.
• RBC expects long‑haul capacity to remain tight on several of IAG’s routes.

WHY IT MATTERS: The upgraded price target and implied upside highlight IAG’s attractive investment case as analysts view constrained long‑haul capacity as a tailwind for the airline group’s earnings potential.

FAQ

What is the new price target RBC set for IAG?
RBC Capital Markets raised its price target on International Consolidated Airlines Group SA (LSE:IAG) to 500 pence per share, up from a previous target of 465 pence. The analysts said the airline group remains their preferred play amid constrained long‑haul capacity, reflecting confidence in its future earnings.

What upside do analysts see for IAG shareholders based on the latest close?
Based on the share closing price of 418.70 pence, RBC calculates an implied upside of roughly 22 percent for IAG shareholders when dividends are taken into account, suggesting a notable potential return if the new price target is achieved and reflects market expectations of future earnings growth.

Which RBC analysts kept an Outperform rating on IAG and what did they say?
RBC analysts Ruairi Cullinane and Jakub Glinkowski kept an Outperform rating on IAG, describing the airline group as their preferred play on constrained long‑haul capacity, indicating confidence in the carrier’s position despite limited supply on long‑haul routes for the upcoming travel season.

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