Air France-KLM : Oddo BHF still on hold
(CercleFinance.com) - Oddo BHF maintains its "neutral" rating on Air France-KLM shares, with an unchanged target price of E17.
5.
Note that yesterday Air France-KLM announced that it had been selected from a consortium as the winning candidate in the financing solicitation process launched by SAS.
Air France-KLM's investment would amount to $144.5m, of which $109.5m in ordinary shares and $35m in secured convertible bonds.
In all, the consortium and the Danish government would invest $1.175bn, of which $475m in shares and $700m in convertible bonds.
On completion of the transaction, AFKL would hold a minority stake of up to 19.9% in SAS.
While it is still difficult to quantify the benefits of such an agreement, analysts feel that the investment is limited (1.8% of gross cash at end-June) to obtain a stake in a strong brand that will have been able to upgrade its cost base by going through Chapter 11.
The analyst is now waiting for the CMD due on 7 November to begin a possible rerating of the share. In the meantime, the analyst still prefers Ryanair in the sector.
Copyright (c) 2023 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.
5.
Note that yesterday Air France-KLM announced that it had been selected from a consortium as the winning candidate in the financing solicitation process launched by SAS.
Air France-KLM's investment would amount to $144.5m, of which $109.5m in ordinary shares and $35m in secured convertible bonds.
In all, the consortium and the Danish government would invest $1.175bn, of which $475m in shares and $700m in convertible bonds.
On completion of the transaction, AFKL would hold a minority stake of up to 19.9% in SAS.
While it is still difficult to quantify the benefits of such an agreement, analysts feel that the investment is limited (1.8% of gross cash at end-June) to obtain a stake in a strong brand that will have been able to upgrade its cost base by going through Chapter 11.
The analyst is now waiting for the CMD due on 7 November to begin a possible rerating of the share. In the meantime, the analyst still prefers Ryanair in the sector.
Copyright (c) 2023 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.