Oddo BHF reiterates its 'underperform' rating on Air France-KLM, with a price target lowered from 11.5 to 10.5 euros, considering that while demand remains solid, unit costs will still be under pressure in 2024.

According to the analyst, 'progress is tangible, but the benefit of initiatives will be concentrated at the end of the period, and short-term cash pressure is significant (adjusted FCF of -1.3 billion euros in 2024, -0.8 billion in 2025 and -0.3 billion in 2026)'.

The research firm adds that with an EV/EBITDA 2024 multiple of 3.7 times, penalized by cash consumption, the Franco-Dutch airline's stock trades at a 20% premium to the European majors.

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