(CercleFinance.com) – Oddo BHF confirms its ‘outperform’ rating on Lufthansa shares with a price target lowered from 11.3 to 10.5 euros, in particular due to the rise in fuel prices.
‘We believe that exposure to German macro is also an explanatory factor; however, the group is much more international than in the past. We are convinced that the control of the trajectory of unit costs excluding fuel (CASK) which will be more strongly visible at Lufthansa than at its competitors from the end of this financial year will bring a renewed confidence, indicates the analyst.
While the company will present its quarterly results on November 2, the broker table anticipates an adjusted EBIT of 1,316 ME (+16.3% compared to Q3 2022), in line with the company’s expectations, and a turnover of 10. 4 MdsE.
‘In FY 24 and FY 25, we maintained our caution in terms of changes in yields but adjusted our fuel bill (with coverage of c65% in FY 24 and non-existent in FY 25), which reduced our EPS by 3. 3% and 2.8% respectively,’ concludes the broker.
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