Lufthansa: BarCap downgrades stock
(CercleFinance.com) - Barclays Capital (BarCap) has downgraded its rating on Lufthansa from "Equal weight" to "underweight," despite raising our target price for the share by 5% to 23 euros, wondering whether the German company's improved results are sustainable.
The broker believes that management's aims to fashion the sector and boost sales, are leading to capital allocation decisions that are not always financially robust.
BarCap also mentions better opportunities elsewhere in the airline industry, with IAG (International Airlines Group, the parent company of British Airways and Iberia), currently its best pick.
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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.
The broker believes that management's aims to fashion the sector and boost sales, are leading to capital allocation decisions that are not always financially robust.
BarCap also mentions better opportunities elsewhere in the airline industry, with IAG (International Airlines Group, the parent company of British Airways and Iberia), currently its best pick.
Copyright (c) 2018 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.