RBC Says IAG Valuation Remains 'Attractive'; Outperform Rating Maintained

09:14 AM EST, 12/23/2025 (MT Newswires) -- RBC Capital Markets reiterated its outperform rating on International Consolidated Airlines Group (IAG.L, IAG.MC), d/b/a IAG, amid a model update, noting that the British Airways owner's valuation remains "attractive." "We update macro assumptions (including cheaper fuel) and lift FY27E-FY28E capex (in line with company comments on the 3Q25 call). We introduce quarterly forecasts for FY26E in our model. Our earnings estimates in FY25E-FY26E are not significantly changed, whilst we firm FY27E EBIT/ EPS by >2%," the research firm said Monday, maintaining the stock's price target at 5 pounds sterling. Analysts also expect 1 billion euros worth of share buybacks annually from the group and a dividend yield of 3%.