Air France-KLM Stock: Morgan Stanley Upgrades to Buy with a Target of €11.50
The stock of the Franco-Dutch airline continues its recovery that began last week and is among the few stocks to see a significant rise in a generally declining Paris market. This movement occurs on the day Morgan Stanley upgraded its rating and price target for the stock.
Morgan Stanley Upgrades to Buy and Raises Price Target to €11.50
On May 26, Morgan Stanley upgraded its recommendation on Air France-KLM from 'market-weight' to 'overweight', while raising its price target from €9.40 to €11.50. The new target offers a residual potential of about 3.4% compared to the current price of €11.1250. The stock gained 2.11% during the session and is among the top performers in the SBF 120, while the index fell by 0.86%. Based on the expected earnings per share, the stock is trading at about 3.3 times the earnings for the current fiscal year and 2.3 times those of the following year according to the consensus of surveyed analysts. The operating environment has also relaxed: Brent crude has fallen below $100 per barrel, down about 8% over seven sessions, slightly reducing the pressure on fuel costs mentioned during the revision of the 2026 outlook.
Stock Reaches Its 200-Day Moving Average After an 11% Rebound in a Week
In terms of indicators, the stock has returned to its 200-day moving average, located at €11.16, after significantly breaking above its shorter averages (MM20 at €9.86, a gap of nearly 13%). The RSI at 65 reflects the bullish momentum without yet tipping into the overbought zone, as the stock has advanced 11.36% over a week. Crossing the MM200 is now the technical threshold to watch, after several months below this reference. Over three months, the stock is still down 13.56%, but the gap is narrowing session by session. Regarding short positions, consulted statements report a cumulative net short position of 2.96% of the capital, spread across four funds, up 1.32 points over thirty days. The level remains moderate but indicates that some institutional investors maintain a cautious bias on the stock. The next technical benchmark to watch is now the €11.16 zone, whose sustained crossing would confirm the exit from the medium-term bearish channel.
