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(CercleFinance.com) – The title continues to fall with a drop today of nearly 7% (-12% in one week).
Oddo this morning confirmed his neutral advice on the stock and adjusted his price target to 4.2 E from 4.3 E.
Air France-KLM accelerated the return of its capacities with a new reduction target limited to 55% in the 3rd quarter of 2020 compared to the 3rd quarter of 2019 (against -80% previously announced and -74% at IAG), by 35% in 4th quarter (against -60% previously and -46% at IAG) before coming back to a decrease of -20% in 2021 (unchanged and -24% for IAG).
‘The company continues to anticipate a return to a pre-crisis offer not before 2024 (against 2023 for IAG for example). It anticipates a still negative EBITDA in H2 2020 (but at first glance of lesser magnitude than in H1), ‘says Oddo.
‘We are counting on an adjusted FCF of -4.7 billion euros, which brings the net debt to 7.1 billion euros (10.1 billion euros without retaining the shareholder loan as a contribution of equity)’ adds the analysis office.