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I won’t apologise for speaking it International Integrated Airlines Group (LSE:IAG) stock prices have flew over the past year. How else can you explain your recent performance?
After being grounded during the pandemic, British Airways owners’ shares fell behind last year, doubled in value.
They hit turbulence this year as Donald Trump was exposed to a transatlantic trip, unleashing his global tariff war. Last year, the Atlantic sky looked like blue skiing transparent. Now they seem to have a problem as investors wonder what Trump will threaten next.
Stock prices rise
However, as stocks are up 20% through the ray of optimism, the stock is up 20%, and I’m excited because I took advantage of the recent DIP. I’ve already increased by 27% on the time of purchase, but I’m not looking for an easy win here. Like fools, we prefer to measure success in decades rather than weeks.
The share prices of the international integrated airline group are odd. It has increased by 85% in one year and 153% in three years. However, those who glanced at the price-to-revenue ratio would have assumed that the price had declined by a similar amount, as it was trading at a reduced price of around 6.8 times the revenue.
We expect it from crashing stock rather than surge. But then air travel is a volatile sector as it tends to impact from all sides. Bad Weather – Economic or Meteorology can throw away the best relaxed plans from the course. From volatile fuel prices to wars, pandemics and natural disasters, everything can send revenue to tailspin.
Growth, dividends, buybacks
Some built-in notes of nature. Secondly, we don’t know what the world will throw at us, but there’s a good chance that the airline will catch it.
In February, the group reported revenue growth of 9% for the full year of 2024. “Market-leading networks, strong brands, operational focus”.
Operating profit before the exceptional items jumped to 26.7%, at 4.444 billion euros, while free cash flow was at 3.56 billion euros. And that was after investing 2.8 billion euros in the business.
The International Integrated Airlines Group still has a net debt of 7.5 billion euros, a legacy of the pandemic. The subsequent dividend yield is a modest 2.38%, but it is projected to rise to 2.86% this year and 3.28% in 2026. The board also plans to repay an additional 1 billion euros of excess capital annually via share buybacks.
The 25 analysts lining up stock price forecasts for the year produce median targets just above 382p. If correct, it’s a solid increase of around 19.8% from today’s 319p. £10,000 will cost £11,980 or £12,266, including its 2.86% yield.
The predictions are not guaranteed accurately, but I am happy with it.
Of the 26 analysts, he has made a strong purchase by giving an impressive 18 people to share stocks over the course of a year, but only one person sells.
Of course, what it needs is a tweet from Trump to knock a group of international integrated airlines off the course, while the US recession and other economically troublesome people are in pain. Like the shock of oil prices rises. But I am optimistic and I think the inventory is worth considering. So I bought it.
