Air France-KLM: Barclays downgrades stock

(CercleFinance.com) - Barclays says that it has downgraded Air France-KLM shares from 'Overweight' to 'Equal Weight'.


Barclays analysts say they are concerned about the political context in France, which they believe could rekindle major industrial action.

The broker also mentions recent comments from Lufthansa, which said it had noted a bout of weakness in the economy category on transatlantic routes, as well as KLM, which pointed to certain difficulties in its long-haul network.

Barclays, which has slashed its target price from E15 to E9.5 (cp: E8.2, -4.2%), nevertheless says it appreciates the group's strategic positioning, as well as the quality of its management team.


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