Broker snap: Credit Suisse ups forecasts for IAG

15th Feb 2012 14:37

Ahead of International Airlines Group's (IAG) full-year results at the end of the month, Credit Suisse has raised its price target by 24% to 189p from 152p. However, with the new target leaving only a 6% upside potential to the current share price, the broker has reiterated its neutral recommendation.Credit Suisse expects the group to present fourth quarter earnings before interest and tax (EBIT) of €38m and has upped its 2011 annual EBIT forecast to €488m, from the previous €478m estimate. The Swiss bank also raised its 2012 EBIT estimate to €295m from €272m."In our view, IAG retains a highly attractive strategic outlook as it likelyconsolidates bmi, and develops JBAs with American Airlines/JAL before we consider the potential for further global integration. However, we think recent US$/fuel price gains limit the scope for FY12 upgrades, which may weigh on short-term momentum," analysts explain.S.C.