Air France-KLM’s stock was upgraded to Hold from Reduce by Kepler Cheuvreux on Tuesday, as the airline’s shares approached its valuation target despite robust second-quarter results.
The brokerage maintained its price target at €11.50 per share, citing limited near-term upside potential. Kepler Cheuvreux noted that the stock’s current valuation—trading at a P/E ratio of 2.95 and a PEG ratio of 0.21—suggests undervaluation relative to near-term earnings growth, though the firm sees restricted scope for further gains.
Air France-KLM reported a 9.9% year-over-year revenue increase to €9.3 billion for the quarter, driven by sustained demand. Adjusted operating profit reached €484 million, as the group managed higher fuel costs through operational efficiencies. The results prompted Kepler Cheuvreux to raise its profit assumptions for the current fiscal year, though mid-term estimates were adjusted modestly, leaving the price target unchanged.
The brokerage’s view remains slightly below mid-term consensus estimates tracked by Visible Alpha. Kepler Cheuvreux’s model updates followed the release of Air France-KLM’s financial results, which also highlighted the company’s ability to offset cost pressures while maintaining profitability.
Air France-KLM’s shares are listed under ticker AF:FP on Euronext Paris and AFLYY in over-the-counter markets. InvestingPro data indicates a 22% potential upside to the stock’s fair value, though Kepler Cheuvreux’s Hold rating suggests limited immediate momentum.
