Deutsche Lufthansa (XTRA:LHA) Is Up 5.8% After Broker Upgrade Highlights Turnaround Momentum

• Earlier this month, Kepler Cheuvreux upgraded Deutsche Lufthansa’s rating from Hold to Buy, highlighting progress in its turnaround program and potential benefits from sector-wide factors like capacity constraints and lower fuel costs.
• The broker also pointed to Lufthansa’s growing focus on premium long-haul travel and its Eurowings expansion as areas where shifting global demand patterns could enhance the group’s competitive position.
• Next, we’ll examine how this upgrade and confidence in Lufthansa’s turnaround efforts may influence the company’s existing investment narrative.

This technology could replace computers: discover 28 stocks that are working to make quantum computing a reality.

Deutsche Lufthansa Investment Narrative Recap

To own Lufthansa today, you need to believe its turnaround plan, premium long haul focus and multi brand network can offset persistent cost pressures and labour risks. Kepler Cheuvreux’s upgrade and the share price move help reinforce the turnaround as the key short term catalyst, while union pressure and competitive intensity remain the most important risks, and the new rating does not fundamentally change that balance in the near term.

Among recent announcements, the sharp improvement in Q2 2025 profitability, with revenue of €11,189 million and net income of €1,012 million, stands out as most relevant. It provides operational backing to Kepler’s view that Lufthansa’s turnaround is gaining traction, which in turn may shape how investors weigh the upcoming earnings in March 2026 against ongoing concerns around labour costs and competitive pressures.

Yet behind the turnaround optimism, investors should be aware of the mounting union pressure and what it could mean for...

Read the full narrative on Deutsche Lufthansa (it's free!)

Deutsche Lufthansa's narrative projects €43.3 billion revenue and €1.8 billion earnings by 2028. This requires 3.9% yearly revenue growth with earnings remaining flat at €1.8 billion from today’s level.

Uncover how Deutsche Lufthansa's forecasts yield a €7.89 fair value, a 8% downside to its current price.

Exploring Other Perspectives

Twelve fair value estimates from the Simply Wall St Community span a wide range, from €5.62 up to €27.83 per share, showing how far apart individual views can be. Against that backdrop, the recent broker upgrade and focus on Lufthansa’s turnaround highlight how differently people are weighing execution risk and sector wide cost pressures when thinking about the company’s future performance, so it can be worth comparing several perspectives side by side.

Explore 12 other fair value estimates on Deutsche Lufthansa - why the stock might be worth 35% less than the current price!

Build Your Own Deutsche Lufthansa Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Deutsche Lufthansa research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Deutsche Lufthansa research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Deutsche Lufthansa's overall financial health at a glance.

No Opportunity In Deutsche Lufthansa?

The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com