The price of shares in Air France-KLM is close to a major medium term resistance level around 10.94 EUR. A correction phase over the short term appears to be the logical outcome. Investors should open a short trade and target the € 9.97.
The company shows low valuation levels, with an enterprise value at 0.43 times its sales.
Its low valuation, with P/E ratio at 10.04 and 7.34 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.
The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
According to forecast, a sluggish sales growth is expected for the next fiscal years.
The company has insufficient levels of profitability.
Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
For the past year, analysts have significantly revised downwards their profit estimates.
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