(News Bulletin 247) – Barclays initiated coverage of Air France-KLM shares on Monday evening with an ‘overweight’ recommendation and a price target of 2.3 euros, highlighting in particular the improvement in the airline’s balance sheet.

In a study devoted to the sector, Barclays estimates that Air France-KLM should be able to take advantage of the strength of demand, but also of its internal restructuring.

From a sector perspective, the analyst sees demand catching up — combined with the reopening of Asian economies and corporate travel — likely to more than outweigh the slowing economy.

The intermediary specifies that he intends to carefully monitor the activity indicators in order to determine when the sector will manage to return to its pre-pandemic levels, knowing that it is now very close.

‘In the immediate future, what really matters, in our opinion, is the level of profitability that European companies can display,’ he adds.

As part of its rating, Barclays also started tracking Lufthansa and Ryanair with a favorable recommendation.

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