(CercleFinance.com) – Stifel downgrades its recommendation on Lufthansa from ‘buy’ to ‘hold’ with a price target reduced from 11 to seven euros, considering that ‘depressed short-term prospects overshadow the still solid medium-term outlook’ .
The broker points to an impact of the ripple effects of the strikes in the first quarter on unit revenue in the second quarter, while B787 delivery delays continue to weigh on unit costs excluding fuel.
Also, Stifel reduces its EBIT estimate for Lufthansa by 15% to 1.84 billion euros for 2024 (compared to guidance of 2.2 billion). For the second quarter, its estimate of 565 million seems about 35% lower than consensus.
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