Air France-KLM: Oddo cuts target price

(CercleFinance.com) - Oddo BHF has maintained its "underperform" rating on Air France-KLM shares, and has lowered its target price for them from 4.
4 euros to 3.8 euros, after reducing its estimates for the French-Dutch airline.

This target price is obtained via a normative valuation where analysts retain an EBITDA margin of 16% for their 2024 sales estimate and then apply an EV/EBITDA multiple of 5x, all of which is discounted to the beginning of 2022.

After its quarterly publication, the broker recognises an optimistic return of capacity, but points to cash burn that remains significant. He also considers that deleveraging is necessary, although that liquidity offers time.


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