Air France: Oddo raises target price

(CercleFinance.com) - Air France announced Friday evening the signing of a wage agreement with the trade unions.


Following the rapid and massive validation of the inter-union dispute, Oddo said that it cannot see the pilots trying to take further action together to obtain the entirety of their original demands.

The broker confirms its buy rating on the stock and has raised its target price from 10 euros to 11.1 euros after removing a 10% discount for uncertainty.

The broker sees this agreement as particularly positive: i/ finally, inflation is contained: the agreement results in an increase in staff costs that is more limited than expected c. 60 million euros overall, especially since the increases of 0.4% and 0.6% already paid at the beginning of the year 2018 are included in the retroactive increase of 2%, ii/ proven efficiency: the new CEO, Benjamin Smith, has demonstrated that he is able to deliver on a sensitive subject in a short period (c. 3 weeks).


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