Lufthansa: Stifel downgrades its recommendation

(CercleFinance.com) - Stifel downgrades its recommendation on Lufthansa from 'hold' to 'sell', with a target price reduced from E7 to E4.
5, stating "We see severe pressure on consensus estimates for this and next year (~25%)".

The broker points out that the profit warning issued by the German airline last Friday was driven by profound weakness in H2, rather than by effects limited to Q2 alone.

Judging Lufthansa's problems to be complex, Stifel points to "too much inefficient capacity growth despite yield weakness, combined with perceived product shortcomings and uncompetitive cost structures".


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