Air France-KLM: Oddo BHF upgrades stock

(CercleFinance.com) - Oddo BHF has upgraded its rating on Air France-KLM shares from "neutral" to "outperform", having nudged up its target price for them from 1.
45 euro to 1.7 euro, after sharply increasing its short-term estimates for the airline.

The broker has massively raised its 2022 EBITA estimates (+243% to 889 million euros), although maintains a cautious view beyond then (+7% in 2023 and +4% in 2024) to reflect the macroeconomic slowdown.

Oddo considers that at its target price, the stock would still be trading at a discount that is harder to justify today (compared to Lufthansa and IAG) given the premium in terms of yield and the reduction in risk on its balance sheet.


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