Air France-KLM: Oddo a buyer; a 'buoyant environment'

(CercleFinance.com) - An Oddo BHF analyst today announced that he is maintaining his "buy" rating on Air France-KLM stock, highlighting a buoyant environment, although a busy agenda for Benjamin Smith.


At a road show in Paris, Frederic Gagey, Air France-KLM's CFO, shared the views of the group's CEO Benjamin Smith's in terms of near-term priorities. [First of all], the crisis with Air France's trade unions needs to be resolved. Having met at an inter-union meeting last Friday, they asked for a meeting with the new Executive Director General, even though no strike notice was launched. (...) [Then], there is the group's governance, with the desire to find a balance between KLM and Air France, the broker states.

Oddo BHF notes that, despite this busy agenda, the sector environment remains just as dynamic for the airline, and that its financial situation is improving. The analyst is therefore maintaining his target price of 10.30 euros, based on a normative valuation 2019, incorporating a 10% discount for uncertainties.

Oddo believes that the arrival of Benjamin Smith as the group's CEO adds credibility to the likelihood of a best-case scenario, with significant upside potential.



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