Air France-KLM Shares Dip 1.96%, Lagging Behind in the SBF 120
The stock of the Franco-Dutch airline stalls at midday in an otherwise upbeat Parisian market. The stock pauses after an exceptional May, as a broker just downgraded its stance on the stock.
Barclays Downgrades Its Recommendation, Slowing the Stock's Momentum During the Session
Air France-KLM shares decline by 1.96% to €11.24 during the session, while the SBF 120 index is up by 0.40% and the CAC 40 by 0.39%. Barclays has lowered its rating to 'underweight' from 'market weight', although it slightly raised its price target from €9.30 to €10.00. The target remains over 11% below the current price, reflecting a cautious view on the valuation after the recent surge. Kepler Cheuvreux, on the other hand, has maintained its 'hold' advice with an unchanged target of €10.50 on June 3. Based on the consensus of analysts surveyed, the stock is trading at about 3.5 times the earnings expected this year.
The Stock Digests a Monthly Gain of Nearly 25% and Faces Resistance
Today's decline comes after a spectacular rebound: +24.89% over a month and +14% over a year. The stock is now trading above its three moving averages, with a gap of 5.24% from the MM20 (€10.68) and 12.85% from the MM50 (€9.96). The stock has just crossed its 200-day moving average (€11.05), which has regained its role as a technical support.
The resistance identified at €11.74 remains the short-term ceiling to watch. The RSI at 67 indicates a still bullish momentum without tipping into overbought territory. Today's consolidation could test the strength of the 200-day moving average crossing, in a sector context marked by discussions between Singapore Airlines, Airbus, and Boeing regarding a large aircraft order.
