International Consolidated Airlines Group S.A.  

International Consolidated Airlines Group S.A. (LON: IAG) is an FTSE 100 index listed international home improvement company with approximately 1,430 stores.

Investment Rationale – WATCH at GBX 152.78

• Increase in Net Debt: The Company’s net debt rose by around 26.6% during Q3 FY21 when compared with Q3 FY20.
• Weak Profitability Guidance: IAG had expected operating loss before exceptional items to be approximately €3.0 billion during FY21.
• Sluggish Macroeconomic Indicators: The UK consumer inflation reached a 10-years high during October 2021. Furthermore, the UK GDP witnessed a lower-than-expected growth during Q3 FY21.
• Unfavourable Technical Indicators: From a technical standpoint, a 20-days exponential moving average of GBX 160.42 indicates a correction in the stock price.
• Moving Average Convergence Divergence: The MACD line remained lower than the signal line, indicating a correction in the stock price

One Year Share Price Chart

(Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the increased net debt during Q3 FY21 and unfavourable technical indicators, we have given a “WATCH” recommendation on International Consolidated Airlines Group S.A.  at the closing market price of GBX 152.78 (as of 24 November 2021).

*The reference data in this report has been partly sourced from REFINITIV.

*Dividend Yield may vary as per the stock price movement.

Disclaimer

References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.

This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.

The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.

Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.

Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.