Air France-KLM Tops the SBF 120 with a 27% Surge in Five Sessions
The Franco-Dutch airline group extends its rebound in a Parisian market clearly trending lower. Two brokers have just raised their price targets on the stock, following a quarterly earnings release that marked a turning point in the stock's recent trajectory.
A 26.7% Rebound in One Week Places the Stock Well Above Its Moving Averages
The stock gains 5.38% to €13.32, while the CAC 40 drops 1.65% and the SBF 120 falls by a comparable margin, following a sharp correction in technology stocks on Wall Street.
Air France-KLM holds the top spot in the broader index, after already jumping the previous day following its third-quarter results. These results, published on November 5 showed an adjusted operating result of €1,346 million, up €126 million, driven by unit revenues that offset the fuel bill.
Over the week, the gain reaches 26.7%, placing the price nearly 24% above its 20-day moving average (MM20) and nearly 19% above its 200-day moving average (MM200).
The RSI at 77 signals an overbought condition. Breaking above the high of the last 30 sessions, at €12.64, makes this level the nearest support, with the next resistance at €13.98.
Morgan Stanley and JP Morgan Raise Their Price Targets to €14.90 and €15.50
Two price target increases dated today accompany the session. Morgan Stanley raises its target from €13.20 to €14.90 with an overweight rating, while JP Morgan lifts its target from €14.50 to €15.50, also rated overweight.
Based on the price of €13.32, these targets imply a potential upside of about 12% for the former and 16% for the latter.
The analyst opinions have therefore improved markedly in a single session. In terms of valuation, the consensus of the analysts covered gives a projected P/E of about 4.2 times earnings for the current fiscal year. At the same time, the European court's ruling on Covid aid to KLM, issued on November 5, was welcomed favorably by the group, although the procedure has not yet been completed.
