Lufthansa: Oddo BHF maintains 'outperform' rating
(CercleFinance.com) - Oddo BHF is maintaining its "outperform" rating on Lufthansa shares, with an unchanged target price of E12.
5.
In its opinion, the acquisition of a 41% stake in ITA is an excellent transaction for Lufthansa, the analyst says, who points out that with ITA, Lufthansa is accelerating on Europe's 3rd largest market, with a market share of about 27% and about 13% on routes between Italy and Europe.
Oddo BHF described the deal as "strategic" with "an astute structure", and pointed out that the transaction was limited to E325m, to be financed by a capital increase, accompanied by a further E250m from the Italian government.
Beyond the valuation, Lufthansa has already returned to net debt below its level in 2018, which allows it to seize opportunities, the analyst concludes.
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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.
5.
In its opinion, the acquisition of a 41% stake in ITA is an excellent transaction for Lufthansa, the analyst says, who points out that with ITA, Lufthansa is accelerating on Europe's 3rd largest market, with a market share of about 27% and about 13% on routes between Italy and Europe.
Oddo BHF described the deal as "strategic" with "an astute structure", and pointed out that the transaction was limited to E325m, to be financed by a capital increase, accompanied by a further E250m from the Italian government.
Beyond the valuation, Lufthansa has already returned to net debt below its level in 2018, which allows it to seize opportunities, the analyst concludes.
Copyright (c) 2023 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.