IAG Shares Upgraded at Stifel, Downgraded at Oddo BHF This Week

International Consolidated Airlines (LON: IAG) shares are down over 13% in 2022, with headwinds stemming from Covid travel restrictions still impacting the travel sector, although the situation has improved dramatically.

In the last six months, IAG shares have gained 20%, and despite the current macroeconomic situation, the outlook for the travel sector in 2023 is somewhat positive.

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But for one analyst, it is not yet enough, with Oddo BHF’s Olfa Taamallah downgrading IAG shares to Underperform from Neutral with a 103.04p price target in a note on Tuesday.

However, on the same day, Deutsche Bank analyst Jaime Rowbotham raised the firm’s price target on IAG to 155p from 140p, maintaining a Hold rating on the shares.

Meanwhile, Stifel analyst Johannes Braun went a step further and upgraded IAG shares to Hold from Sell, raising the firm’s price target on the stock to €1.50 from €1 per share.

The analyst said in a note to clients that he has become “a bit more constructive” on European flagship carriers, adding that they are benefiting from various tailwinds, including the more resilient transatlantic traffic, the gradual reopening of Asia and more manageable fuel cost headwinds.

IAG shares are still way below their pre-pandemic level of over 400p per share and their pandemic highs of over 200p. However, recent months have been slightly more promising for shareholders who will be hoping the travel rebound continues into next year.

According to TipRanks, four analysts have a Buy rating on IAG shares, with five at Hold and one at Sell. The average price target is currently 148.23p, representing a potential 12.16% upside from current levels.