In a report released today, Jaina Mistry from Jefferies maintained a Hold rating on Deutsche Lufthansa (0H4A – Research Report), with a price target of €5.80.
Jaina Mistry’s rating is based on a combination of factors influencing Deutsche Lufthansa’s financial outlook. The company reported a net profit miss due to the absence of tax benefits, but its underlying EBIT was in line with expectations. Despite macroeconomic challenges, Lufthansa anticipates a strong summer season and robust performance in the second quarter, maintaining its full-year guidance.
Furthermore, the company’s fuel cost guidance is significantly lower than consensus, leading to substantial EBIT upgrades for the fiscal year, which offsets the first-quarter net profit shortfall. However, Lufthansa’s trading multiples are higher compared to peers like IAG, and there are several risks such as short booking cycles and macroeconomic factors that could impact future performance. These mixed signals contribute to the Hold rating, as the potential for positive outcomes is balanced by these risks.
In another report released on April 14, Kepler Capital also maintained a Hold rating on the stock with a €6.50 price target.
Based on the recent corporate insider activity of 7 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.