Stifel reaffirms its 'buy' recommendation on Air France-KLM, while lowering its price target from 22 to 18 euros, in the wake of EBIT estimates cut by 19% for the airline over the 2024-25 period.

The broker notes a setback in terms of cost dynamics observed in the fourth quarter of 2023, but judges that 'the share does not reflect the structural improvement and strategic vision delivered under CEO Ben Smith, which should finally pay off'.

According to Stifel, Air France-KLM is trading on an EV/EBITDA 2025 ratio of around 2.2 times, i.e. discounts of over 30% to its peers and over 50% to its historical average, "thus not reflecting the much-improved configuration".

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