Lufthansa: Credit Suisse slashes target price
(CercleFinance.com) - Credit Suisse now expects Lufthansa to report an operating loss of 1.
5 billion euros in 2020.
However, the broker confirms its outperformperfom rating on the share, although has cut its corresponding target price by 24% to 15.45 euros (against 20.25 euros).
At the end of last week, the group confirmed 2019 adjusted EBIT of 2,026 million euros, and a suspension of its dividend payment for FY 2019. It also confirmed that the new bookings over the last week had collapsed 50% year-on-year.
"We think the net figure is likely worse in line with US carrier commentary," the broker says.
"With capacity cuts of up to 70%, the market's attention is clearly turning towards liquidity risk... We go from forecasting a E2.2bn operating profit in 2020E to a loss of E1.5bn".
Copyright (c) 2020 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.
5 billion euros in 2020.
However, the broker confirms its outperformperfom rating on the share, although has cut its corresponding target price by 24% to 15.45 euros (against 20.25 euros).
At the end of last week, the group confirmed 2019 adjusted EBIT of 2,026 million euros, and a suspension of its dividend payment for FY 2019. It also confirmed that the new bookings over the last week had collapsed 50% year-on-year.
"We think the net figure is likely worse in line with US carrier commentary," the broker says.
"With capacity cuts of up to 70%, the market's attention is clearly turning towards liquidity risk... We go from forecasting a E2.2bn operating profit in 2020E to a loss of E1.5bn".
Copyright (c) 2020 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.