Up 124% per year! But is it possible that the price of shares on IG just goes up here?

Listening to passengers talk about British Airways, there is no shortage of complaints. Listening to the shareholders of BA’s parent company Airlines Consolidated Group (LSE: IAG) However, I would be surprised to hear many complaints about recent performance. it was the best performer in the Ftse 100 something that points Last year – and IAG’s share price doubled last year.

Despite that, price-to-earnings (P/E) continues to look cheap. In 8, it can not only look decently good in absolute terms, it is well repeated in high places several years ago.

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So, is there room for growth in IAG’s stock prices – and should I invest?

Things can only get better from here

I think there could be room for the stock to move more.

A key reason for the positive sentiment among investors last year was that IAG’s business performance improved. A look at what is available for each segment shows this.

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Things aren’t back to where they were in 2018, but the direction of travel has been consistent and positive.

Revenue Currently, is it closed where it stood in 2018. Therefore, if the company remains tight on costs, that should give the opportunity for higher profit margins.

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In the first nine months of last year, net debt fell by more than a third. In November the Company launched an Abelana Buyback, which I take as a sign of financial confidence on the part of the Board (although I was once more attracted by the money used to pay off debt or improve the division).

Civil aviation demand is high and the company has struck a positive note with this year’s outlook without arriving at a detailed forecast.

Am I ready to invest?

However, I have some concerns.

Another detail of IAG’s relentless cost-cutting and passenger checks has meant business for a long time. But I think that’s an indication of its realization that it may have lost significant competitive advantages as customers asked why it should cut a lot of airline fees by flying more routes.

I also see the risk that, when the next Big Dequr Dequrk comes to civil aviation, it could again hurt revenue, profit – and share price.

From pandemics to terrorist attacks and reductions, such externalities began to appear from time to time and remain outside the IAG’s control to a large extent (or completely).

So while I think the share price can continue to rise, I don’t like the risk profile at the current price so you have no investment plans.