Air France-KLM: stock breaks through 11.26 € support level
The Franco-Dutch airline is losing ground at midday, in a declining Paris market and at the bottom of the SBF 120 index. The stock lost a technical threshold during the session and continues a decline that has been underway for several weeks.
Support broken during the session, below the three moving averages
The Air France-KLM share is down 1.63% at 11.16 €, below its previous close of 11.35 €. The stock broke through its 11.26 € support level during the session and remains below it (last at 11.14 €). The price is also below its three moving averages: the MA20 at 11.57 € (difference of 3.54%), the MA50 at 11.85 € (5.82%) and the MA200 at 11.28 € (1.06%). Selling pressure is evident across all timeframes: -4.66% over the week and -16.69% over three months, while the RSI at 46 remains neutral. The SBF 120 is down 0.91% and the CAC 40 is down 1.03%.
The stock ranks at the bottom of the index, far from the worst performer Schneider Electric (-9.62%). This decline is taking place in a market under pressure regarding French debt. The 10-year OAT is at 4.90% (Banque de France survey of October 2), at the peak level of the series, and the spread with the Bund reaches 1.47 points, its highest since January 2012. Brent is trading at 102.58 $ per barrel, down 2.6% over seven sessions.
UBS lowers its target to 13 € on a stock valued at 3.2 times earnings
UBS lowered its price target from 13.50 € to 13.00 € while maintaining its "hold" rating. This target implies an upside potential of approximately 16.5% compared to the current price of 11.16 €. For reference, CIC Market Solutions had reiterated its hold rating on Friday with the same target of 13.00 €. Based on the consensus of surveyed analysts, the stock is trading at approximately 3.2 times current fiscal year earnings and 2.4 times next fiscal year earnings.
The company published its second quarter results on July 30, with revenue up 9.9% but operating income down 34%. It then adopted a cautious tone: the approach remains agile and 2026 prospects have been revised in terms of capacity, in an environment described as particularly volatile. A share buyback program of 1.0 billion €, announced on June 9, remains ongoing.
