Lufthansa: Credit Suisse downgrades to 'neutral'
(CercleFinance.com) - Credit Suisse has downgraded its rating on Lufthansa from "outperform" to "neutral," saying that the corona crisis could put the airline's liquidity at risk.
Once the Covid-19 crisis passes, the sector could face the introduction of liquidity buffer requirements, which could drive equity capital costs higher, the broker warned in a note on European airlines.
In such a context, Lufthsansa would be heavily affected by the rising cost of equity for the sector, Credit Suisse added, which has slashed its target price on the share from 15.45 euros to 10.26 euros.
The Lufthansa share is currently up 0.3% on the Frankfurt Stock Exchange.
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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.
Once the Covid-19 crisis passes, the sector could face the introduction of liquidity buffer requirements, which could drive equity capital costs higher, the broker warned in a note on European airlines.
In such a context, Lufthsansa would be heavily affected by the rising cost of equity for the sector, Credit Suisse added, which has slashed its target price on the share from 15.45 euros to 10.26 euros.
The Lufthansa share is currently up 0.3% on the Frankfurt Stock Exchange.
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.