Morgan Stanley double upgrades IAG to 'overweight', shares fly higher

(Sharecast News) - Morgan Stanley double upgraded IAG on Wednesday to 'overweight' from 'underweight' and lifted the price target to €2.80 from €2.10. The bank said that following its prior concerns, capacity growth now looks increasingly supportive to pricing in both the near and medium term.

"IAG's cheap valuation is not the exception within sector, but the path to earnings upgrades looks clearest," it said.

The bank also said that supportive fare data is showing up in advertised fares in North Atlantic, while advertised data across the rest of the total network is also outperforming.

At 1210 BST, the London-listed shares were up 3.7% at 179.30p.