Jaina Mistry, an analyst from Jefferies, maintained the Hold rating on Deutsche Lufthansa. The associated price target remains the same with €6.60.
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Jaina Mistry has given her Hold rating due to a combination of factors influencing Deutsche Lufthansa’s current financial standing and market conditions. Despite a notable 71% beat in net income driven by effective cost management and interest factors, the company’s sales figures fell short by 4%, and free cash flow also missed expectations. This mixed performance suggests a cautious outlook, as the company maintained its qualitative full-year guidance despite the net income beat leading to a consensus upgrade.
Additionally, while Lufthansa’s trading multiple is higher compared to peers like IAG, the unchanged outlook commentary highlights potential risks such as short booking cycles, macroeconomic factors, and challenges in aircraft delivery and spare parts procurement. These elements contribute to a balanced view, justifying the Hold rating as the risks and opportunities appear to be evenly matched at this time.
In another report released on July 28, Bernstein also maintained a Hold rating on the stock with a €7.50 price target.
Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of 0H4A in relation to earlier this year.