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Lufthansa’s Troubles Are Only Getting Worse, Says Stifel Analyst
- Analyst sets Street-low price target that implies 20% decline
- Airlines are coming under pressure during summer travel season
Lufthansa passenger jets.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Deutsche Lufthansa AG is facing long-running “profound” problems ahead, according to Stifel Nicolaus & Co. analysts, who cut their price target to a new low and urged clients to sell the stock.
The German carrier is growing capacity too quickly and will continue to face pressure on pricing and costs, according to Johannes Braun. He cut his price target to €4.50, a new low among analysts tracked by Bloomberg and one that implies about a 20% drop from current levels. Lufthansa shares fell as much as 3.1% on Monday.