Lufthansa: Oddo adjusts target price; maintains buy rating
(CercleFinance.com) - Oddo has confirmed its buy rating on the Lufthansa share.
However, the broker's disappointment regarding the company's level of debt has led it to trim its target price from 26.5 euros to 26 euros. The broker says that it has marginally adjusted its estimates following the publication, which are still at the top of the range for 2019, with an adjusted EBIT of 3,055 million euros.
Oddo says that although the lack of visibility on summer bookings explains management's caution, they are convinced that the streamlining of the group's offer on the summer season and self-help on the unit costs will lead to gradual upgrades in the consensus.
The message on the unit revenue per passenger was cautious regarding H1 2019, due to: i/ a continuation, over the first few months of the year, of the downward trends visible at the end of 2018 (-3% in Q4, including -4.9% in Europe and -14.8% in South America) and ii/ high comparison bases in H1 (RASK of +1.2% in Q1 2018 and +1.3% in Q2), Oddo said.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
However, the broker's disappointment regarding the company's level of debt has led it to trim its target price from 26.5 euros to 26 euros. The broker says that it has marginally adjusted its estimates following the publication, which are still at the top of the range for 2019, with an adjusted EBIT of 3,055 million euros.
Oddo says that although the lack of visibility on summer bookings explains management's caution, they are convinced that the streamlining of the group's offer on the summer season and self-help on the unit costs will lead to gradual upgrades in the consensus.
The message on the unit revenue per passenger was cautious regarding H1 2019, due to: i/ a continuation, over the first few months of the year, of the downward trends visible at the end of 2018 (-3% in Q4, including -4.9% in Europe and -14.8% in South America) and ii/ high comparison bases in H1 (RASK of +1.2% in Q1 2018 and +1.3% in Q2), Oddo said.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.