Air France-KLM: double upgrade by JPMorgan

(CercleFinance.com) - On Wednesday, JPMorgan doubled its rating on Air France-KLM from 'underweight' to 'overweight'.


In a sector study, JPMorgan sees a possible 'inflection point' in the results of the Franco-Dutch carrier, whose share price has fallen by 40% this year to historic lows.

Its underlying fares (excluding the Olympic Games) seem to be holding up well, and growth in line with the market in capacity on its routes seems likely during the winter season", JPMorgan points out.

Combined with lower kerosene prices and the disappearance of the exceptional items that weighed on the accounts last year, the research firm is counting on a "decent" improvement in margins next year, leading it to post a forecast for operating profit (Ebit) 12% higher than the average consensus estimate for 2025.

Its target - set at 12.5 euros - thus shows potential upside of around 40%.

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