Air France-KLM: upbeat after Deutsche Bank upgrade
(CercleFinance.com) - Air France-KLM shares were the biggest risers on the SBF 120 index on Friday in Paris, boosted by an upgrade from Deutsche Bank, which applauded the group's deleveraging process.
In a study of the airline sector in Europe, the borker upgraded the stock to "buy" (from "hold"), with a target price raised to E2.30 (from E1.75 previously): a new target price that gives the stock upside potential of around 45%.
While the analyst acknowledges that the market may still have some concerns about the carrier's debt levels, he believes that fears of further dilutive fundraising should begin to dissipate, supporting the share price.
Deutsche Bank also upgraded its recommendation on Lufthansa and IAG shares from "hold" to "buy" on Friday.
At around 11.30am, Air France-KLM shares were up 3.2%, while the SBF 120 index was up 0.4%, bringing its increase since the start of the year to more than 35%, however, it has still been ransacked relative to pre-Covid levels of around 5 euros.
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