Air France-KLM Shares Bounce Nearly 3% Targeting Resistance at €13.98

A Rebound that Brings the Stock Close to Its €13.98 Resistance

Air France-KLM stock is up 2.79% at €13.44 midday, among the strongest gains in the SBF 120. The rebound follows a 5% drop on July 8, thus the stock recovers part of this decline without returning to its recent highs. The session remains aligned with a nearly stable CAC 40 (+0.04%), making the carrier's performance all the more noticeable. The movement brings the price close to its resistance at €13.98, a level that capped the rally in recent weeks. Beyond this, the 3-month performance reaches nearly 37% and the stock is up nearly 21% over a month, a fundamental momentum that Tuesday's decline did not challenge. The RSI at 57 remains in the neutral zone, leaving room before any overheating signal.

Barclays Raises Its Target but Maintains a Cautious Stance on the Stock

On July 8, Barclays raised its price target on Air France-KLM from €10 to €12, while maintaining an 'underweight' rating. The new target is still nearly 11% below the current price, a gap that reflects the London broker's skepticism towards the spring rally. The stock is trading at about 4.3 times the earnings expected for the current fiscal year, according to the consensus of analysts surveyed. In the background, the company completed a €500 million senior bond issue at the end of June and signed a €1 billion credit line in mid-June with twelve banks, two operations that have strengthened its financial structure. The €13.98 zone remains the next technical level to observe to gauge the continuation of the momentum.