IAG share price targets an all-time high: Nov. 7 will be key

The IAG share price continues its rebound and is within touching distance of its all-time high. It was trading at 410p, its highest point since February 2020. It needs to rise by just 7.5% to hit its record high. 

Why IAG share price is soaring

The IAG stock price has experienced a strong surge, rising from its pandemic low of 84p to the current 410p, representing a 360% increase that has propelled its market capitalization to over £18.8 billion. 

IAG, the parent company of companies like British Airways, Iberia, LEVEL, and Aer Lingus, has become one of the best-performing companies in the FTSE 100 Index in the past few years. 

This growth happened as the company continued its turnaround efforts, which have paid off in the past few years. A good example of this is what happened in the first half of the year when revenue jumped by 8% to €15.9 billion. 

Its revenue and other profitability metrics were in line with what analysts were expecting. For example, the company’s operating profit jumped by 43% to €1.87 billion in the first half. It jumped by 35% to €1.68 billion in the second quarter.

IAG’s business has benefited from the ongoing transatlantic demand, which has held well despite the recent trade issues between the United States and Europe. It also has a leading market share in the Latin America and Caribbean and European divisions.

On top of this, the company has boosted its business and is now making substantial sums of money from the premium segment and its loyalty programs.

And the company is not done yet as it continue to implement policies that will boost it performance. For example, the company aims to achieve a medium-term operating margin between 12% and 15%. 

British Airways, which competes with Delta Air Lines and United, aims to grow its operating profit to 15% by investing more in its premium and loyalty program.

In addition, the company is investing in its Spanish operations, with Iberia aiming to achieve an operating profit of €1.4 billion. 

IAG share price has also done well as the management has continued to delever its balance sheet. Its net debt dropped to €5.4 billion in the from €7.5 billion in the same period last year. 

The company is returning funds to investors. It plans to return about €1.5 billion to shareholders through dividends and share buybacks. 

The next key catalyst for the IAG share price will be its earnings, which will come out on Friday next week. The consensus among 22 analysts is that it operating profit will be €2.09 billion, a big increase from what it made last year.

IAG stock price technical analysis 

The monthly chart shows that the IAG stock price has bounced back in the past few years. This rebound happened after it formed a double-bottom pattern at 87.45p in 2020 and 2023. This is one of the most common bullish reversal sign.

The stock has remained above all monthly moving averages, a sign that bulls remain in control. At the same time, the Relative Strength Index (RSI) and the MACD indicators have continued moving upwards.

Most importantly, there are signs the bulls are targeting the all-time high of 440p, which may happen soon, potentially after its financial results. A move above that level will point to more gains, potentially to 500p.

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