(CercleFinance.com) – Oddo BHF maintains its ‘neutral’ rating on Air France-KLM shares with an unchanged price target of 16 euros.
On the occasion of its CMD (investor day), Air France-KLM unveiled its strategy to improve its EBIT by €2 billion between 2023 and 2028, which would reach €3.9 billion, an upside of 44%. compared to the current Visible Alpha consensus.
‘The company has clearly ruled out the return to a dividend distribution before having generated a significantly positive FCF (not before 2026 in our opinion)’, reports Oddo BHF.
In this context, although deeming the aircraft manufacturer’s plan ‘clear’, the broker keeps its estimates unchanged at this stage while awaiting an improvement in visibility at KLM and indications which would demonstrate that the phasing of the improvement in EBIT is not heavily concentrated at the end of the period.
‘With ADP, Lufthansa and Wizz, the stock achieved one of the worst performances in the sector with +8% YtD’, concludes the analyst.
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