(News Bulletin 247) – Oddo BHF maintains its ‘neutral’ rating on the Air France – KLM share with a price target reduced from 21 to 17.5 euros (post capital reduction) in order to ‘act a little more caution on unit costs.
The company carried out the consolidation of all the shares in circulation and the capital reduction by reducing the par value of each share with the exchange of 10 shares for 1 new one with a par value of 1 E.
‘After a good summer season, we expect a stable yield transition in Q3 2023 compared to Q3 2022 (but an increase of c25% compared to 2019 driven by the Americas) and a yoy decline of c5% in Q4 in order to ‘integrate the slightly dilutive effect of the return of capacities’, emphasizes Oddo BHF.
The broker is now counting on the investor day to be held on November 7, believing that it ‘will be key to restoring confidence in the company’s ability to neutralize the effects of inflation’.
Although Air France-KLM considers that it has solved its negative equity problems (via the transactions finalized with Apollo (500 ME based on MRO components and 1.5 MdE on the Flying Blue loyalty system), Oddo BHF continues to prefer Ryanair in this sector.
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