Oddo BHF reiterates its 'underperform' rating on Air France-KLM, but raises its target price from nine to 9.5 euros, 'to reflect a lower cash burn than previously anticipated, driven by buoyant bookings'.

'An upside certainly exists at yield level for fiscal 2024, but we think that the recovery in CASK (unit cost) will have to be visible before we can return to the stock', warns the analyst.

Air France-KLM is trading on unattractive multiples compared with its major peers, with an EV/EBITDA 2025 of 3.9 times, compared with three times for Lufthansa and 2.8 times for IAG", adds Oddo BHF, which still favors low-cost airlines.

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