IAG

Earlier in the month, we wrote about the IAG momentum signals. You can find the note here, but the below screenshot captures the idea well enough.

Today, IAG downgraded the FY22 outlook, citing the rise in natural perils, and the stock is off quite a bit (-6.61%).

The downgrade was also somewhat predictable given the announcement from SUN late last week. We wrote about that here, where the key takeaway was that SUN had eaten through a fairly large amount of their natural hazards allowance, screenshot below.

IAG and SUN have similar businesses, and as such what happens to one is usually a good read through to how the other might be faring.

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