IAG share price targets an all-time high ahead of earnings

International Airlines Group (IAG) shares have surged over 107% since April, nearing an all-time high, as the market anticipates robust earnings due this Friday. This positive outlook is supported by strong recent results from European airline competitors like Ryanair and Lufthansa, coupled with IAG's own first-half revenue growth of 8% to €15.9 billion and a 43% increase in operating profit to €1.8 billion. Analysts project an operating result of approximately €2.09 billion, driven by strong demand in transatlantic and Latin American routes, with technical analysis suggesting further upside potential towards 441p and possibly 500p.

Analysis

IAG's share price has demonstrated significant momentum, surging over 107% since April and nearing its all-time high, largely driven by market anticipation of robust earnings scheduled for release this Friday. This positive outlook is substantially supported by strong recent financial performances from European airline competitors, including Ryanair's 20% profit after tax increase to €1.72 billion and Lufthansa's 32% net profit rise to €1.09 billion in the first nine months.

The company's own first-half results reported an 8% revenue growth to €15.9 billion and a substantial 43% increase in operating profit to €1.8 billion, with management committed to continued margin expansion and shareholder returns. Analysts project a full-year operating result of approximately €2.09 billion, underpinned by robust demand in its transatlantic and Latin American routes.

From a technical perspective, the stock is in a strong uptrend, trading above its 50-day and 100-day Exponential Moving Averages and having surpassed the 416p resistance level. This technical strength suggests potential for further gains, with the all-time high of 441p as the immediate target, and a long-term potential reaching 500p.

Key Decisions for Investors

• Investors should consider potential long positions given the strong fundamental outlook, positive peer performance, and bullish technical indicators pointing towards further price appreciation.
• Monitor the upcoming earnings report for confirmation of margin expansion and shareholder return commitments, which could serve as additional catalysts.
• Evaluate the stock's performance around the 441p all-time high resistance level, as a decisive break could signal a move towards the 500p long-term target.