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Sep 27 2022, 06:50 IST/BST
IAG
Franchise intact post-COVID – just more debt
DAVY VIEW
The market (particularly the widebody market) is supply constrained. Demand is still, in our view, linked to a COVID recovery. IAG’s franchises remain intact, and it has the most exposure to the Atlantic markets. Any stabilisation or perceived strength through a recession will lead to a re-rating, all of which is not reflected in one of the most heavily shorted stocks in the market. We therefore upgrade to ‘Outperform’.
