Air France-KLM: Oddo BHF cuts target price

(CercleFinance.com) - Oddo BHF reiterates its 'underperform' rating on Air France-KLM shares, with a target price lowered from E11.
5 to E10.5, considering that while demand remains solid, unit costs will still be under pressure in 2024.

The analyst says that progress is tangible, but the benefit of initiatives will be concentrated at the end of the period, and short-term cash pressure is significant (adjusted FCF of -E1.3bn in 2024, -E0.8bn in 2025 and -E0.3bn in 2026).

The broker adds that, with a 2024 EV/EBITDA multiple of 3.7x, penalised by cash consumption, the Franco-Dutch airline's stock is trading at a 20% premium to the European majors.


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