Air France-KLM (OTCMKTS:AFLYY) Shares Gap Up - Should You Buy?

Key Points

• Shares jumped premarket: Air France-KLM gapped up from $1.16 to $1.24 and last traded at $1.2899 (volume 72,457), a rise of about 7.3%.
• Analyst consensus is "Hold": Two analysts rate the stock Buy and six rate it Hold, with recent mixed moves (Zacks downgraded while Barclays and Oddo upgraded), leaving a MarketBeat consensus of Hold.
• Earnings beat but balance-sheet concerns: Quarterly EPS of $0.23 topped estimates of $0.04 and revenue beat slightly, yet liquidity is weak (current ratio 0.62) and debt-to-equity is very high at 5.39, with a P/E of 1.89 and market cap ~ $3.27 billion.

Air France-KLM SA (OTCMKTS:AFLYY - Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $1.16, but opened at $1.24. Air France-KLM shares last traded at $1.2899, with a volume of 72,457 shares traded.

Analysts Set New Price Targets

A number of research firms have recently commented on AFLYY. Zacks Research downgraded Air France-KLM from a "strong-buy" rating to a "hold" rating in a research note on Monday. Barclays raised Air France-KLM from an "underweight" rating to an "equal weight" rating in a research note on Monday, March 9th. Oddo Bhf raised Air France-KLM from a "neutral" rating to an "outperform" rating in a research note on Friday, February 6th. Royal Bank Of Canada began coverage on Air France-KLM in a research note on Tuesday, January 20th. They issued a "hold" rating on the stock. Finally, Citigroup reissued a "neutral" rating on shares of Air France-KLM in a research note on Friday, February 20th. Two equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold".

Air France-KLM Stock Up 7.3%

The company has a current ratio of 0.62, a quick ratio of 0.56 and a debt-to-equity ratio of 5.39. The firm has a market capitalization of $3.27 billion, a price-to-earnings ratio of 1.89, a PEG ratio of 0.15 and a beta of 1.36. The stock has a fifty day moving average of $1.21 and a 200-day moving average of $1.25.

Air France-KLM (OTCMKTS:AFLYY - Get Free Report) last issued its earnings results on Thursday, February 19th. The transportation company reported $0.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.04 by $0.19. The business had revenue of $9.53 billion for the quarter, compared to analysts' expectations of $9.43 billion. Air France-KLM had a return on equity of 100.70% and a net margin of 5.00%. As a group, sell-side analysts expect that Air France-KLM SA will post 0.21 EPS for the current year.

About Air France-KLM

Air France-KLM is a leading European airline group formed in 2004 through the merger of France's flagship carrier Air France and the Netherlands' national airline KLM Royal Dutch Airlines. Headquartered in Paris and Amstelveen, the group provides passenger, cargo and maintenance services across a global network, connecting major hubs in Europe, North America, Asia, Africa and Latin America.

The company's primary business activities include scheduled passenger transport on short, medium and long-haul routes; air freight operations under Air France-KLM Cargo; and technical support and maintenance services through AFI KLM E&M.

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