Air France: Oddo raises target price
(CercleFinance.com) - In an article published yesterday, the French daily Le Monde reported that the company and the shareholding bodies appear to be in talks for a new injection of 6 billion euros in equity and quasi-equity to restore the group's balance sheet.
In the current scenario, the French State would provide 3 billion euros, the Dutch State 1 billion euros, with the airline aiming to raise 2 billion euros from investors, Oddo says.
The daily says that the operation could take several forms, such as a capital increase, hybrid debt issues or perpetual bonds redeemable at the issuer's option.
According to analysts, Air France-KLM is facing a leverage issue rather than a liquidity issue. The broker estimates that the liquidity of 12.3 billion euros at the end of September will be enough to last until the end of the 2021 financial year, they add.
Oddo confirms its neutral rating on the stock, although has raised its target price for the share 3.8 euros to 4.7 euros.
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