Lufthansa: Stifel still steering clear
(CercleFinance.com) - Stifel expects Lufthansa Airlines to report an EBIT loss of around 1.
06 billion euros for Q1 2021, which would be a slight improvement on both a Y-o-Y and Q-o-Q basis, thanks to the airline's cost performance and the momentum in the Cargo segment.
However, due to slow a vaccination rollout and ongoing lockdowns and restrictions in Europe, the broker is cautious and expects an FY 2021 EBIT loss of 2.1 billion euros, compared to its previous estimate of -1.7 billion euros.
As a result, Stifel maintains its "sell" rating on the stock, maintaining its target price of 4 euros, arguing that the market is not properly taking into account the higher net debt levels caused by the crisis. The share is currently down almost 2% in Frankfurt.
Copyright (c) 2021 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.
06 billion euros for Q1 2021, which would be a slight improvement on both a Y-o-Y and Q-o-Q basis, thanks to the airline's cost performance and the momentum in the Cargo segment.
However, due to slow a vaccination rollout and ongoing lockdowns and restrictions in Europe, the broker is cautious and expects an FY 2021 EBIT loss of 2.1 billion euros, compared to its previous estimate of -1.7 billion euros.
As a result, Stifel maintains its "sell" rating on the stock, maintaining its target price of 4 euros, arguing that the market is not properly taking into account the higher net debt levels caused by the crisis. The share is currently down almost 2% in Frankfurt.
Copyright (c) 2021 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.