BABWF - International Consolidated Airlines: Significant Capital Gains Possible For The Patient Investor

2024-05-07 05:36:28 ET

Summary

• IAG's price rise has seen healthy price rise YTD. With its Q1 2024 results due later this week, the question is whether the upside can be sustained.
• With a strong bookings outlook, the top line can grow fast in Q1 2024. And there's no reason to expect a margin decline either.
• The full year looks good too, and indicates that the stock is significantly undervalued, both in comparison with peers and its own past averages.
• There are risks up ahead if demand slows down or oil prices spike, but the positives outweigh these, at least right now.

Since I last wrote about International Consolidated Airlines Group ( ICAGY ) ( BABWF ) or IAG in August last year, its price has risen by just 8.7%. By comparison, the S&P 500 ( SP500 ) has risen by almost 15% since, indicating the stock's appreciable lag....

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