IAG in today's Sunday Telegraph9 May 2021 08:38
Article in today's Sunday Telegraph:
The bargain stocks left behind by Britain's booming market
While the FTSE has recovered its pandemic losses, some stocks are cheaper than before Covid struck
BySam Benstead9 May 2021 • 5:00am
Britain’s stock market has recovered from its pandemic lows but bargain-hunting investors can still find stocks trading much more cheaply than before share prices went spiralling.
The FTSE All-Share index, a barometer for British stocks, has now reclaimed all of its 30pc fall in March last year, once dividends are included. This is after a rally that started on positive vaccine news in November and gathered pace as restrictions have been lifted.
However, some shares still have ground to make up even as economies have reopened and the general optimism has infected investors. There are bargains to be found on the London stock market, experts have said, particularly for those willing to be brave and invest in businesses and industries that remain out of favour.
Rob Burgeman of Brewin Dolphin, the wealth manager, said airline share prices had the potential to soar, especially after Britain’s ban on international travel is lifted. Shares in International Airlines Group, owner of British Airways, Iberia and Vueling, are trading at around 210p, having tumbled from more than 400p when the pandemic struck.
“IAG is 50pc cheaper than it was pre-pandemic, which is unfair given its collection of well-known brands and diversified short and long-haul offerings,” Mr Burgeman said.
EasyJet and IAG haven't fully recovered yet while Ryanair and WizzAir have
From 21 Feb '20 to 7 May 15:25:30
NovJanMarMay-50.0%0.0%
? easyJet PLC: 1453.4 ? 1077.0-25.9%
? International Consolidated Airlines Group SA: 623.0 ? 208.3-66.6%
? Wizz Air Holdings PLC: 4407.0 ? 5000.013.5%
? Ryanair Holdings PLC: 15.30 ? 17.3313.3%
More share information on
On Friday the company reported a loss of €1.1bn (£1bn) in the first three months of the year, with flights running at just 20pc of capacity. But Mr Burgeman said the business, which is pursuing a takeover of Spanish budget airline Air Europa, was well placed to recover as air travel returned.
“The acquisition of Air Europa, if approved, would give it an even stronger foothold in Europe. IAG is in reasonably good shape despite the past year and some analysts have said that, all going smoothly, the company could return to its pre-Covid profit margin levels as soon as 2023,” he said.
Shares in easyJet, which trade at around the £10 mark, down from £15 before markets fell last year, are another potential bargain, according to Mr Burgeman.
“The shares are 30pc lower than they were before the crisis but things are looking up for budget travel once again. Of the short-haul airlines, easyJet looks the best placed to benefit when tourists flock to sunnier climes for a well deserved break,” he added.
Alex Wright, a fund manager at Fidelity, said housebuilders’ st
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