Air France-Klm: Oddo BHF a buyer - likes ambitions plan
(CercleFinance.com) - On Wednesday an analyst at Oddo BHF confirmed a "buy" rating on the share of Air France-KLM, appreciating the group's presentation of a plan for 2020-2024 that it considered "ambitious".
While capex is heavier, there are also levers at all levels.
The broker believes that over two-thirds of this plan may be considered as guaranteed, although investors doubt the group's ability to retain most of this increase in profitability. In other words, there is a potential risk of more strike action in the future. Indeed, this has often been the case at the company, although agreements that have been signed since the appointment of Ben Smith reflect a significant change in the situation, the broker points out.
Oddo BHF confirms its target price of 11.80 euros for the share, representing upside potential of about 18%. Nevertheless, it says that a margin of 7% to 8% would lead it to increase its target price by another 4.6 euros to 6.4 euros, the analyst says.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
While capex is heavier, there are also levers at all levels.
The broker believes that over two-thirds of this plan may be considered as guaranteed, although investors doubt the group's ability to retain most of this increase in profitability. In other words, there is a potential risk of more strike action in the future. Indeed, this has often been the case at the company, although agreements that have been signed since the appointment of Ben Smith reflect a significant change in the situation, the broker points out.
Oddo BHF confirms its target price of 11.80 euros for the share, representing upside potential of about 18%. Nevertheless, it says that a margin of 7% to 8% would lead it to increase its target price by another 4.6 euros to 6.4 euros, the analyst says.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.