Deutsche Bank stays at 'hold' on IAG following inaugural ESG day
Analysts at Deutsche Bank took a fresh look at British Airways parent company International Airlines Group on Tuesday after the company's inaugural ESG day gave "a very credible boost" to net-zero plans.
Deutsche Bank said last Friday's ESG Day saw the company lay out its vision for a "revolution in the air", with the group's main focus being on the actions it has taken to achieve its target of net-zero emissions by 2050.
The German bank said "considerable ground" was covered in IAG's ESG day, including offsetting, new aircraft and operations, carbon removals, and perhaps most important of all, sustainable aviation fuel, where it said IAG has made "notable progress".
"'Someday is now' is one of the slogans of LanzaJet, the company with which British Airways has partnered to develop the UK's first SAF production facility – it aims to highlight that the technologies exist to decarbonise air travel and that we shouldn't have to wait, with funding & focus needed from all stakeholders to resolve this," said Deutsche Bank. "Finally, IAG also explained how it is trying to build a diverse & inclusive workforce."
DB reiterated its 'hold' rating and 155.0p target price on the stock.
Reporting by Iain Gilbert at Sharecast.com