Kepler Cheuvreux upgraded its rating on Air France-KLM to ‘Maintain’ from ‘Reduce’, citing valuation support after the airline group reported a 9.9% year-on-year rise in second-quarter revenue to €9.3bn.
The brokerage maintained its €11.50 price target, noting the stock had already reached that level. It adjusted medium-term estimates modestly while keeping the target unchanged, indicating limited further upside from current levels.
Air France-KLM posted adjusted operating profit of €484m in the quarter, achieved despite higher fuel costs and steady demand. Kepler Cheuvreux described the performance as solid, with the group’s valuation metrics—including a price-to-earnings ratio of 2.95 and a PEG index of 0.21—supporting the upgrade.
The brokerage remains modestly below Visible Alpha’s medium-term consensus estimates. InvestingPro’s analysis, which uses a separate fair-value model, suggests a 22% potential upside to Air France-KLM’s shares, compared with Kepler Cheuvreux’s more conservative stance.
