Goldman Sachs analyst Patrick Creuset downgraded Lufthansa (DLAKY) to Sell from Neutral with a price target of EUR 6.60, down from EUR 7.10. The firm cites impacts from the Middle East war for the downgrade. It models $1B of product basis loss on the company’s fuel hedges, given it mainly hedges crude and gasoil while the price spread between jet fuel and crude/gasoil has increased significantly. This impact will mainly be felt in Q2 and Q3, the analyst tells investors in a research note.
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