IAG Shares (LON:IAG) Upgraded to Buy at Goldman Sachs

International Consolidated Airlines Group shares (LON:IAG) are trading 1.92% higher this morning following an upgrade from Goldman Sachs. The investment bank revised its rating on the stock to ‘Buy' from ‘Neutral,' signalling increased confidence in the airline group's near-term prospects.

The upgrade from Goldman Sachs prompted an immediate upward movement in IAG's share price, as analyst Patrick Creuset set a new price target of 470p, a considerable increase from the previous 400p. This revision reflects the firm's expectation of an improved trading environment for IAG as the winter season approaches, driven by stronger premium demand and continued capacity discipline on key transatlantic routes. The stock has demonstrated a year-to-date increase of 32.62%, indicating an already bullish trend in the name.

Goldman Sachs' revised outlook aligns with earlier positive sentiment from JPMorgan, whose analysts maintain an ‘Overweight' rating on IAG and have increased their price target to 550p, citing the airline as their top pick for 2025.

JPMorgan highlighted the potential for further share price appreciation, pointing to revenue tailwinds that could lead to higher Revenue per Available Seat Kilometer (RASK) than current market forecasts anticipate.