RI mentioned in brokers note, again20 Jan 2022 11:16
Now, this time, don't shoot the messenger. This is the variable that keeps me out of IAG for the moment, and this kind of comment certainly doesn't inspire me. I would have to ensure I have loads of spare cash to buy up any allocation, assuming of course cash raised is through retail investors and there is no unavoidable dilution due to other fund raising routes. These are the factors that have to be taken into account, are real and it's not my fault!
"JPM downgraded British Airways and Iberia parent IAG to 'neutral' from 'overweight'. It said IAG should benefit from the re-opening of transatlantic travel and a pick-up in corporate travel through 2022.
It has also undertaken major restructuring in the last two years and JPM expects it to generate an EBIT margin of more than 10% by 2023.
"However, with 2021E net debt of c€13bn, the company may need to issue equity at some point," it said. "We don't think there is an immediate need for this given IAG has c€12bn of liquidity and no major near-term debt refinancing.
"However, the possibility of an equity issuance rises in the event of further share price recovery, in our view, which is likely to cap the upside potential of the shares at this stage."
https://www.lse.co.uk/news/jpmorgan-upgrades-ryanair-downgrades-iag-bq5vz6ytyc9ccjp.html