Bay Capital Share News (BAY)

German broker Commerzbank is keen on British Airways after a good roadshow meeting with the airline. BA continues to benefit from a strong market environment and is making significant progress on major issues such as pensions, the merger with Iberia and the transatlantic JV with American, the broker says.A target price of 225p does not yet reflect potential synergies from the merger with Iberia, which could be worth about 70p/share.Internal preparations remain well on track with final closure expected in the second half of December. Resulting synergies are still expected to be about €400mpa. The scalable structure of the merged entity IAG will also easily allow for the integration of further airlines. As evidenced with the recent release of August traffic data, the market environment remains strong with particularly good momentum in premium as well as non-premium yields. The airline is also in a strong position in its dispute with its cabin crews.The rating is 'add' with a target price of 225p concludes the broker.