(CercleFinance.com) – Oddo BHF reiterates its ‘underperformance’ opinion on Air France-KLM with a price target lowered from 11.5 to 10.5 euros, considering that if demand remains solid, unit costs will still be under pressure in 2024.
According to the analyst, ‘the progress is tangible, but the benefit of the initiatives will be concentrated at the end of the period and the pressure on short-term cash is significant (adjusted FCF of -1.3 billion euros in 2024, – 0.8 billion in 2025 and -0.3 billion in 2026).
The research office adds that with a 2024 EV/EBITDA multiple of 3.7 times, penalized by cash consumption, the title of the Franco-Dutch airline is trading at a premium of 20% compared to the majors. European.
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