(News Bulletin 247) – Oddo maintains its ‘neutral’ rating on the Air France-KLM share, with an unchanged price target of 2.1 euros.
While the publication of the 1st quarter is scheduled for May 5, the analysis office anticipates ‘a maintenance of the trend visible since the 2nd half of 2022, with an expected Network yield up 23% compared to the level of 2019’.
The broker reports that the rise accelerated at the end of the quarter, ‘which bodes well for the direction of the 2nd quarter’.
Oddo models an operating loss of 316 ME (vs 350 ME in Q1 2022) for a turnover of 6,422 ME (+44.5%) and targets an EBIT FY 23 of 1,508 ME. In addition, the analyst anticipates an Adjusted FCF of €334 million, which would reduce net debt slightly below €6 billion (vs. €6.3 billion at the end of December 2022).
‘The pricing environment shows no signs of slowing down (apart from cargo, whose yield decline is, at this stage, in line with our estimates), which could offer an upside on Q2 and Q3 but we would like to obtain additional assurances on the evolution of unit costs’, concludes Oddo.
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