IAG Price Target Lifted as RBC Notes 'Attractive' Valuation, Cash Return Yield

11:50 AM EDT, 08/21/2026 (MT Newswires) -- RBC Capital Markets bumped up its price target for International Consolidated Airlines Group (IAG.L, IAG.MC) to 5 pounds sterling from 4.65 pounds, noting that the company's valuation, return profile and cash return yield continue to be "attractive." "IAG's valuation still doesn't reflect its leading margin and return profile, which IAG's transformation measures should support. Long-haul capacity is set to remain relatively constrained on some IAG home markets into the winter season, and likely beyond, given the relatively disciplined growth plans of European legacy/ network airlines," analysts said Friday. "We forecast an ~18% 3-year EPS CAGR from FY26E on top-line growth, margin recovery and buybacks, with IAG trading at ~7.5x 12-month forward PE on our forecasts." The research firm also adjusted its revenue, EBIT and adjusted diluted EPS estimates for IAG for 2026 through 2028. In terms of dividends and buybacks, the company is projected to see a cash return yield of between 7% and 8% over the 2026 to 2027 period. RBC has an outperform rating on the British Airways owner's stock.