Air France has the potential to rise 24%, according to Citi

24th Jun 2011 11:21

Thursday's decline in crude oil prices following the announcement that the International Energy Agency (IEA) will free up 60 million barrels from strategic reserves put the airline sector in the spotlight. As a result, airline stocks were wanted Friday with Travel & Leisure as the third most bullish sector in Europe. The positive performance by Air France stands out. The French company benefits two-fold as Citi upgraded its recommendation from hold to buy. On the other hand, it reduced its price target to 12.80 from the previous 13.70 euros.The main reason behind the upgrade, according to these experts, is the 32% decline in the share price since the start of 2011. The broker sees a 24% upside potential.Citi also updated its recommendations for the following airlines:- Ryanair Holdings: Reiterates BUY and lowers the price target from 4.30 to 4.10 euros.- EasyJet: Maintains BUY and lowers the price target from 500 to 450 pence.- SAS AB: Reiterates BUY and lowers the price target from 26 to 19.4 Swedish krona.At 10:30am, Air France was up 4.76% to 10.56 euros.S.C./M.D.