Air France-KLM: Berenberg downgrades stock

(CercleFinance.com) - Berenberg has downgraded its rating on the Air France-KLM share from "hold" to "sell," while nudging up its target price from 2.
9 euros to 3 euros, in a report on European and US air transport shares.

"Airlines have struggled with false dawns, with a hoped-for booking surge the latest disappointment, particularly in Europe," the broker said, adding that "valuations appear elevated".

More specifically, Berenberg is downgrading the Air France-KLM share due to the challenges faced by the Franco-Dutch airline in terms of cash flow and capital structure. It prefers stocks such as IAG, Wizz Air and Southwest Airlines, on which it has buy ratings.


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