Air France-KLM: Credit Suisse cuts target price

(CercleFinance.com) - Credit Suisse maintains its "underperform" rating on Air France-KLM shares, having cut its target price for them from 2.
20 euros to 1.98 euros, saying that "The next six months may prove crucial period of the equity stories of Air France-KLM".

"AF-KLM has recently raised E1.036bn in new equity, and plans to raise more equity before its 2022 AGM (likely May 2022)," the broker notes, pointing to a risk of dilution.

The broker forecasts an operating loss of 2.9 billion euros for 2021, and believes that the Franco-Dutch airline, along with its German peer Lufthansa, will have the most difficulty competing with other European and global airlines.


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