Where could IAG actions go in the next 12 months? This is what experts say!

In 2024, IAG (LSE: IAG) the actions almost duplicated in value and the airline group was crowned Ftse 100The highest steering wheel. Thanks to the profits that exceed market expectations, the company woke up from its prolonged dream induced by pandemic with an explosion.

However, the owner of British Airways and Iberia has had a turbulent start for 2025. It dropped almost 20% since its peak in February, is the party for the price of IAG shares ended? Or is it simply to refue for another advantage?

This is what city analysts calculate with the negotiation of shares at £ 2.94 today (March 19).

The next destination of the actions

Promisingly, the consensus prognosis for IAG actions is positive. Although it is generally expected that the growth of the shares will be slowed compared to last year, the average price of 12 months of the runners for the shares is £ 4.03. That would be a healthy increase of 37% from the current level.

However, under the number of regular consensus, there is a wide range of opinions among institutional analysts that cover the company. The expert recommendations table below illustrates those differences.

At the upper end, Panmure Liberum analysts believe that IAG actions could increase to £ 5 next year, citing the demand for resistant trips and the lowest prices of fuel for airplanes such as optimism reasons. If this prediction came to fruition, the airline stock would finally eclipse its co-covid level, marking a complete recovery of the pandemic.

On the other hand, Barclays Analysts reduced their target price to £ 2.50 last week from an earlier forecast of £ 4.20. The competence risks of low -cost carriers and the recent gain warnings issued by multiple leading American airlines supported this more gloomy view.

What is evident of these very different perspectives is that no analyst has a glass ball. Corridor's forecasts are not the Gospel. Investors must weigh the opinions of experts against their research and independent convictions.

My verdict

More bullish forecasts for IAG shares Chime with my own opinion. A price objective of the £ 5 shares could be a bit high, but I think there is a great possibility that greater growth can be achieved in the coming months.

The action looks cheap, which is a good omen for future yields. The trade of a profit price ratio (p/e) below 5.5, the business is valued in an attractive way in relation to the FTSE 100 average and the airline sector as a whole. Other aviation actions mentioned by the United Kingdom, such as Easyjet and Wizz airCommerce for higher multiples of 6.9 and 7.1, respectively.

In addition, the company begins to harvest the rewards of an investment of modernization of £ 7 billion in British Airways. This two -year plan implies a significant cash injection in IT infrastructure and the hiring of additional personnel.

In fiscal year24, IAG offered a 22% increase in operational profits to reach a record of 4.3 billion euros, exceeding analysts' expectations for 3.7 billion euros. A stellar action for the United Kingdom's flag operator supported the group's excellent profits.

However, the company faces risks of the weak demand for business trips. In a world where virtual meetings have become common, the group does not expect corporate trips to return to pre-pondemic levels. It remains to be seen if IAG can continue to fill commercial and first -class seats with leisure passengers.

However, with a new shares of shares of 1 billion euros that will be implemented in the next 12 months and the resumption of dividends last year, there is much to keep possible investors interested.