Update shared on04 Sep 2025
Analysts remain cautious on Lufthansa due to valuation concerns despite stable demand and segmental strength in logistics and MRO, as reduced perceived upside and expectations of softer unit revenue leave the consensus analyst price target unchanged at €7.65.
Analyst Commentary
- Analysts see demand for European airlines remaining stable, but regard Lufthansa's valuation as less attractive at current levels.
- Bullish analysts note positive revisions to price targets due to improved performance in logistics and MRO (maintenance/repair/overhaul) segments.
- There is an expectation of softer unit revenue (RASK), which may partially dampen topline growth in the near term.
- Outlook for Q2 described as mixed, reflecting sector and company-specific challenges alongside operational positives.
- Bearish analysts are downgrading the stock due to reduced perceived upside, citing primarily valuation concerns rather than operational deterioration.
What's in the News
- Lufthansa plans to expand its fleet with 63 next-generation aircraft by the end of 2026 and expects to operate substantial numbers of Boeing 787s, Boeing 777-9s, Airbus 350-900s, and Airbus 350-1000s by 2028.
- Air Canada and Lufthansa extended their codeshare agreement to include Lufthansa Express Rail at Frankfurt Airport, enabling seamless air-rail itineraries across Germany and other European countries.
- Lufthansa is reportedly in discussions to acquire a minority stake in Air Europa, competing with Turkish Airlines and Air France-KLM, as part of a prolonged sale process driven by Air Europa’s need to repay government loans.
Valuation Changes
Summary of Valuation Changes for Deutsche Lufthansa
- The Consensus Analyst Price Target remained effectively unchanged, at €7.65.
- The Net Profit Margin for Deutsche Lufthansa remained effectively unchanged, at 4.24%.
- The Consensus Revenue Growth forecasts for Deutsche Lufthansa remained effectively unchanged, at 3.9% per annum.
Disclaimer
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