Air France-KLM: Stifel downgrades stock

(CercleFinance.com) - Stifel downgrades its recommendation on Air France-KLM from 'buy' to 'hold', with a target price lowered from E13 to E8, judging the operating profit target for 2028 to be increasingly out of reach, due to current cost inflation.


After 2024, which was impacted by the Olympic Games, 2025 will suffer from other external imponderables, warns the broker, adding that while the share's EV/EBITDA ratio is trading at a 40% discount to its peers, its FCF yield remains in negative territory.

Nevertheless, Stifel still sees the stock as an option on a successful turnaround at KLM, further improvement at Transavia and positive structural momentum at Air France, capitalising on improved employee relations.


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