Deutsche Bank hikes IAG target price after oil price slump

22nd Jun 2026 09:26

(Sharecast News) - Deutsche Bank has hiked target prices across the listed European airlines sector after the recent slump in oil following the US-Iran peace deal agreed last week, as concerns about supply disruptions eased significantly.

The bank said on Monday it has raised its target for shares of 'buy'-rated International Airlines Group from 460p to 540p. It also upped stock target estimates for continental peers Air France-KLM (from €9 to €11) and Deutsche Lufthansa AG (from €7 to €8), keeping a 'hold' rating for both.

Spot Brent crude prices dropped from nearly $100 a barrel at the start of June to below the $80 mark last week, falling a further 1.7% to $79.21 on Monday morning, following last week's agreement to end the conflict and reopen the Strait of Hormuz.

The forward curve for fuel prices has also "come down significantly", according to analyst Jaime Rowbotham,

"As a result, we are marking to market our assumptions for unhedged requirements at $910/mt for 3Q26, $875/mt for 4Q26 and $830/mt in 2027," he said.

"At IAG [...], where our previous assumptions were struck at the height of the ME conflict and of concerns in terms of the outlook for jet fuel, this has resulted in LSD% reductions in the estimated fuel bills for 2026. Our estimate for IAG is now €8.56bn vs their guidance for ~€9bn on 8th May."

IAG shares were up 1.9% at 463.6p by 1032 BST.