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IAG: cuts up to 2% its losses due to the Russian war

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IAG: cuts up to 4% its losses due to the Russian war

IAG (Iberia) continues to deal with the day-to-day of the war and its effect on an expected recovery with the reopenings, the arrival of Easter and after the summer and a panorama that was predicted more for the tourism sectorand that now an account of the war has been truncated on international flights.

And here, too, if the conflict goes on for a long time, the trust factor fully enters: Traveling within the interior does occur, but uncertainty opens up to international travel, especially to places close to the war caused by Russia. The scenario, for the moment, only remains uncertain, but the negative effect on the economy that the increase in inflation and the incident in GDP can have can also affect the savings dammed up with the pandemic, especially without foreign leisure.

All this while we have known that its president, Luis Gallego has done it again. It already happened with Iberia and now, at the top of the holding company, has waived his 2021 million euro bonus for the crisis that the aviation group continues to experience. what’s more, after cutting the salary in half in 2020 this year, he has cut it again by 10% at his own request.

In its stock chart we see that IAG has obtained recovered positions in the last four days with a rebound of 10% and has minimized the accumulated losses. Now it advances and 2% per year, with rises of 6.34% in the five previous sessions, losses of 17.8% in the month and quarterly gains of 14.6%.

IAG annual stock price

IAG annual stock price

For the fundamental analyst of Ei, María MiraIag “ENA Valuation by Ratios and with an Estimated EPS for the Closing of 2022 of €0.05 / Share, the Market Discounts a Per of 29.25V, Not Excessively Expensive and More if We Adjust It for the Estimated Growth for the EPS, located in the PEG at relative levels of undervaluation, 0.27v Not expensive for EV/EBITDA, 6.76v”.

Consider that”the income statement will improve if forecasts are met and the valuation by multiples as well, but we have already begun that the risk comes from the conflict in Eastern Europe, its impact on demand and mainly on fuel prices”.

IAG value fundamentals

IAG value fundamentals

And he adds that, “in any case, the prospects for IAG’s business are better than in the worst moments of the pandemic and his balance has held stoically. Based on a fundamentally revised new value, we recommend a neutral for IAG with long time horizons. The risk continues to be significant, so the most conservative investors should wait for confirmation of the fulfillment of forecasts”.

As explained the technical analyst of Investment Strategies José Antonio González, “When an asset falls so sharply in a short time, as IAG is down more than 37%, it’s normal for it to try to catch up. In the last sessions it was 24%. This generates a lot of volatility and nervousness. And, it also produces in a context in which the value has been marking a succession of decreasing minimums and maximums. It is a value that is not strong in the short term, but it is not strong in the medium term either, it is a complicated value”.

The first great test that IAG has “is to overcome the area of ​​previous supportsnow turned into resistors, which has around 1.74 euros and the zone of 1.71 euros per share, “It would be the next great zone of resistance whose overcoming would allow a new attack to be proposed to that great zone of decreasing guideline in the medium term”, highlights the expert.

IAG “manages to bounce off the bottom side of the long-term bearish fuchsia channel and la relevant support zone affected around 1,505 / 1,460 euros per share. To get a positive symptom, you need to be vulnerable the previous situation maximum decreasing by 1.8550 euros per share. The following resistances are located in the medium and long-term simple moving averages, and later, the relevant resistance of 2.0730 euros per share”, as indicated by the independent analyst Néstor Borrás.

IAG on daily chart with Average Amplitude Range in percent, MACD oscillator and Trading Volume

IAG stock technical analysis

IAG stock technical analysis

And following the trail of value from a technical point of view, we see that the technical indicators that establish Investment Strategies place IAG, in bearish mode, with just two points out of the 10 to which the value can aspirewith a discount of no less than three.

Thus, only in positive is the volume of business shown, which, in its two aspects, both in the medium and long term, is shown to be growing for value. While, the trend is bearish in the medium and long term bearishfor the moment total slow and fast negative and downward volatility, decreasing in the medium and long term.

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