Air France: UBS reduces opinion and target
(CercleFinance.com) - UBS goes to Neutral (from Buy) and reduces its target price to 8 euros (instead of 12.
50 euros) on the share as Air France staff give a majority vote of 'no' to the multi-year pay deal proposed on 16 April.
“The resignation of CEO Jean-Marc Janaillac raises uncertainty as to AFK's ability to restructure and we think that investors will be cautious until the situation between the management and staff becomes clearer”.
The proposal, which entailed a pay rise of 7% over 4 years (of which 2% in 2018, against staff's 5%), was rejected. “A more generous pay rise would set Air France back on its wish to become more competitive over the medium term”, indicates UBS.
“We continue to believe that there is a way to resolve the employees' current situation, that new management can continue to apply the restructuring measures, and that the company is benefiting from a busy summer season”, adds UBS.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
50 euros) on the share as Air France staff give a majority vote of 'no' to the multi-year pay deal proposed on 16 April.
“The resignation of CEO Jean-Marc Janaillac raises uncertainty as to AFK's ability to restructure and we think that investors will be cautious until the situation between the management and staff becomes clearer”.
The proposal, which entailed a pay rise of 7% over 4 years (of which 2% in 2018, against staff's 5%), was rejected. “A more generous pay rise would set Air France back on its wish to become more competitive over the medium term”, indicates UBS.
“We continue to believe that there is a way to resolve the employees' current situation, that new management can continue to apply the restructuring measures, and that the company is benefiting from a busy summer season”, adds UBS.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.