Jaina Mistry, an analyst from Jefferies, maintained the Hold rating on Deutsche Lufthansa (0H4A – Research Report). The associated price target was raised to €6.60.
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Jaina Mistry’s rating is based on several factors that suggest a cautious approach towards Deutsche Lufthansa’s stock. The company is expected to experience a mixed quarter, with a decline in revenue per available seat kilometer (RASK) being partially balanced by growth in its logistics and maintenance, repair, and overhaul (MRO) sectors. This uncertainty, particularly concerning transatlantic operations, is likely to impact the stock negatively.
Furthermore, the company’s future performance projections and consensus for the fiscal year 2025 rely heavily on achieving turnaround efficiencies in the latter half of the year. Additional risks include potential delays in fleet expansion and an adverse impact from a less favorable business mix. Given these challenges, the stock is trading at a multiple of 3.7 times its estimated enterprise value to EBITDA for 2026, leading to a Hold recommendation.
According to TipRanks, Mistry is a 4-star analyst with an average return of 11.9% and a 70.64% success rate. Mistry covers the Consumer Cyclical sector, focusing on stocks such as Whitbread, InterContinental Hotels, and Accor SA.
In another report released today, RBC Capital also maintained a Hold rating on the stock with a €7.50 price target.