Lufthansa: Crédit Suisse cuts target price
(CercleFinance.com) - Crédit Suisse reinstates "underperform" rating on the Lufthansa share, while cutting its corresponding target price by 15% to 4.
60 euros, now forecasting a 65% decline in business travel traffic for the sector in 2021 compared with 2019.
"With c.45% of Network Airlines revenue from corporate traffic in 2019, this outlook is particularly difficult for LHA," the broker warns.
Therefore, for the German carrier, the broker is increasing its adjusted EBIT loss forecast for 2021 over tenfold - from 149 million euros to 1.8 billion euros - and has reduced its adjusted EBIT forecast for 2022 by 17% to 749 million euros.
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