Debt is still high and there are many ‘shorters’ active in the stock. Moreover, the risk of dilution due to balance sheet cleaning has not yet been fully priced in, Deutsche Bank believes.
The analysts at Deutsche Bank, among other things, adjusted the estimates for turnover and the transport figures further downwards and expect that Air France-KLM will only be able to return to the pre-crisis level in 2024.
For 2020, Deutsche Bank expects a turnover of 10.8 billion euros, compared to more than 27 billion euros in 2019.
Deutsche Bank is also not positive about the expectations for EBITDA and the analysts pointed out the significantly higher cash burn. Where the bank initially assumed an EBITDA of 1.2 billion euros negative in 2020, the analysts now expect a loss of 2.3 billion euros.
If the balance sheet is not cleared, debts will only increase further, the German bank warned.
The Air France-KLM share closed 1.9 percent lower on Thursday at 2.94 euros.
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