This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Airlines under pressure from terror attacks and Brexit, but tend to bounce back from the former relatively quickly and the we don’t even know what the latter means yet. Shares have bottomed out after a sell-off inspired by poor Q3 results. The outlook for Airlines is tough but is a 33% sell-off since Brexit and 42% this year overdone? A decent 5% dividend yield is now better than that offered by some high-yielding defensives which look overbought. Positive H1 results from Int. Cons. Airlines (IAG) tomorrow at 9am could both help or hinder.
Brokers are predominantly neutral, which increases the chances of upgrades as the shares recover from the lows. This is supported by buyers still outweighing sellers and 77% of price targets still suggesting upside from current levels.
Next Event: July Traffic Stats, 4 Aug
Latest Broker 12-Month Consensus: 37% Buy, 48% Hold, 15% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | -9.1 | 0.4 | -32.3 | -34.9 | -38.8 | -23.1 | -24.7 | 80.5 | 175.8 |
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