Morgan Stanley resumed coverage of British Airways and Iberia parent IAG on Monday, with a €2.50 price target.
MS noted that the company’s geographical footprint and limited government support resulted in the group losing its status as a best in class stock.
“We think the easing of travel restrictions in the UK and Ireland will drive strong pent up demand, allowing IAG’s margins and cash flow to recover, easing concerns on balance sheet repair,” it said.
