Air France-KLM shares break through €13.53 and extend a sharp rebound
The Franco-Dutch airline group extends a spectacular rebound in a well-oriented Parisian market. The stock ranks among the strongest gainers of the broader index, well above its moving averages, while oil eases markedly.
A €13.53 threshold broken and a comfortable margin over the moving averages
Air France-KLM shares gained 2.48% to €13.87 intraday and ranked among the strongest gainers of the SBF 120, which rose 1.02%. The stock broke intraday through its highest of the last 30 sessions (€13.53), which now serves as support, and is holding above it.
The gain reached nearly 34% over the week and nearly 27% over the month.
The share price is thus 27% above its MM20 (€10.92). The RSI at 80 indicates an overbought configuration. The next resistance is at €13.98, less than 1% from the current price. Brent fell 4.7% to $93.73 a barrel, a respite for an airline whose fuel costs weigh heavily on its expenses.
Third-quarter results that revived the upward trend
The movement extends the one that followed the publication of November 5: adjusted operating income rose by €126 million, to €1,346 million, as unit revenues offset the rising cost of fuel. Third-quarter results were then followed by the European court's decision in the case concerning Covid state aid to KLM.
Two brokers also raised their price target, which feeds the analyst consensus. Based on expected earnings per share, the stock trades at about 4.3 times earnings for the current fiscal year.
A €1 billion share buyback, announced on June 9, remains in the background. The €13.98 resistance level is the next level to watch.
