Lufthansa: Stifel downgrades stock
(CercleFinance.com) - In a report on European airlines and airport operators, Stifel has downgraded its rating on Lufthansa shares from "buy" to "hold", having reduced its corresponding target price from 8.
5 euros to 6 euros.
Stifel warns about sector conditions in 2023, with the "upcoming downturn into 2023 might be harsher than expected by most... we expect demand weakness and cost inflation (fuel/labour) at the same time".
While it is downgrading its rating on Lufthansa shares due to these sector concerns, Stifel says "while balance sheet strength (as pension deficit unwinds) and FCF transformation provide some downside protection" for the German airline's stock.
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