Equities Update: Mondi, Next, IHG, Bitcoin, IAG…

Mondi Plc: Cautious Optimism Amid Soft Demand

Lale Akoner, global market analyst at eToro says: “Mondi’s Q1 results mark a welcome shift from damage control to cautious momentum, but investors shouldn’t mistake this for a full recovery. The packaging giant has struggled with weak demand and falling paper prices over the past year, and the share price reflects that, down nearly 7% year-to-date. Investors will be watching closely to see whether early signs of stabilisation in volumes are enough to offset continued pricing pressure.

“Cost relief from lower energy and raw material prices should help margins a bit, but it’s not enough. Mondi needs to show it can grow its sustainable packaging business at a time when demand across Europe remains soft. The company’s recent €400 million investment in a new paper machine in Czechia is bold, but feels mistimed if volumes don’t pick up.

“This quarter isn’t about beating expectations; it’s about stopping the bleed. A reassuring outlook could support the recent uptick in analyst sentiment, with Barclays, as an example,  no longer bearish. But if volumes stay flat and pricing doesn’t recover, markets will question whether Mondi’s capital spending is chasing growth that simply isn’t there. Investors should brace for a mixed message: small operational wins, but no macro tailwind yet.”

Warm weather heats up Next sales

Adam Vettese, market analyst for eToro says: “Another update, another hike in profit guidance. This seems to be the common theme for Next at the moment, raising profit estimates for the year for the second time in 2 months and something shareholders will never tire of hearing.

“The unseasonably warm weather boosted sales of summer clothing, which has been great for Next’s Q1 numbers although it is possible that some of this business is now brought forward from Q2. As such, the company is prudently not raising sales forecasts for the next quarter. There are also the National insurance increases and effects of those are likely to be seen later in the year.

“On the other hand, there could be some tailwinds into Q2 such as rival M&S online systems being down due to a cyber-attack. A portion of this £4m a day being lost in sales could find its way into Next’s coffers.

“Shares are already up 30% this year and trading around record levels. Investors will be hoping that Next can keep up this momentum and keep delivering outperformance. With such a high bar they have set themselves and with healthy gains already on the table, it is possible some profit taking will take place at some point.”

IHG bucks the trend despite China slowdown 

Mark Crouch, market analyst for eToro says: “In a clear show of defiance to the industry trend, IHG reported a rise in global revenue per available room for Q1 and reaffirmed its annual profit guidance. And despite recession concerns in its largest market, the U.S. performed well, while Europe, the Middle East, and Africa led the way as the collective strongest-performing region.

“Unsurprisingly, China was the laggard for IHG, posting the only regional decline. However, with U.S. China trade talks reportedly progressing, investors may view the 2025 dip in IHG’s share price as just a temporary setback, or better yet, a buying opportunity.

“Uncertainty around China’s floundering economy may have shaken investor confidence, nevertheless IHG shares are up 20% in the last month, and the acquisition of boutique hotel brand Ruby, alongside ongoing share buybacks and steady dividends demonstrates its dual focus on growth and returning value to shareholders.”

Bitcoin is closing in on the coveted $100,000 price level

Simon Peters, crypto analyst at eToro says: “The rally higher in the bitcoin price overnight coincides with a post by President Trump on his Truth Social platform, that there will be a “Big News Conference” today concerning a major trade deal with a “highly respected” country, widely reported to be the United Kingdom.

“The $100K level is particularly important with bitcoin. As a round number it has acted as a resistance level previously. We saw substantial selling when $100,000 was reached for the first time back in November 2024. The bitcoin price dropped sharply to $90,000 in a matter of days.

“It is possible that we could see a similar sell-off again, and a dip lower into the $90,000’s again but this will be short-term in my opinion.

“Longer-term, however, the bitcoin price should break and stay above $100,000 going forward into the second half of this year and early next year, ultimately leading to a new all-time high and the peak of the crypto bull market.

“Global liquidity – essentially how much money is available in the global economy and a metric which the bitcoin price closely mirrors – is forecast to increase throughout the year, and interest rates globally should continue to come down, contributing to looser financial conditions.

“Depending on what the bitcoin price is when the crypto bull market peaks – for example $150,000, $200,000, $250,000 – if we see a big drawdown in the year that follows, like 2018 and 2022, then there is a chance we could see $100,000 again, but this would be as the major bottom or end of the ensuing bear market in my opinion.”

IAG soars past analysts expectations with plans to acquire 53 new aircraft 

Mark Crouch, market analyst for eToro says: “IAG soared past analysts’ expectations with revenue rising nearly 10% in the first quarter. This comes after macroeconomic and geopolitical turbulence sent the British Airways owner into a tailspin earlier in the year. However, strong passenger demand and lower fuel costs are now providing powerful tailwinds for the airline group.

“Despite hitting a five-year high in 2025, the sudden nosedive in IAG’s share price reminded investors of the inherent volatility in airline stocks. However, this uncertainty appears to be largely superficial. The group’s announcement of plans to acquire 53 new aircrafts signals a confident, long-term growth strategy and strengthens the appeal of its investment case.

“As the summer holiday season approaches, typically IAG’s busiest period, earnings are likely to be further boosted. The key question now is whether IAG can continue to navigate geopolitical headwinds and stay on its current flight path of cash generation and sustainable growth.”