Broker snap: IAG remains Citi's top pick among flag carriers

1st Aug 2011 12:35

Citi has reiterated its buy rating on International Consolidated Airlines (IAG), saying that the group's outlook is the most robust in its sector group.The airline's second quarter results announced on Friday 29 July were the "best so far of the European flag carriers", according to analysts Andrew Light and Nithin Pejaver.IAG's EBITDAR (earnings before interest, tax, depreciation, amortisation and rent) margin of 13.2% in the three months ended 30 June was superior to Air France KLM's 8.1% and Lufthansa's 9.1% (10.8% for its airlines), and was the only one out of the three to beat consensus, the US broker notes.However, higher fuel and non-operating costs lead to lower earnings forecasts for the full year.The target price stays at 300p.Shares were trading 0.29% higher at 238p at 12:35 on Monday.BC