Deutsche Lufthansa AG has received an average recommendation of “Reduce” from six brokerage firms monitoring its stock. According to MarketBeat Ratings, one analyst assigned a sell rating, while five analysts opted for a hold rating, reflecting a cautious outlook on the airline’s performance.
Several brokerages recently updated their assessments of Deutsche Lufthansa. Notably, on October 30, 2023, JPMorgan Chase & Co. upgraded the airline’s rating from “underweight” to “neutral.” On the same day, Barclays also revised its position, changing its rating from “underweight” to “equal weight.” Conversely, Morgan Stanley initiated coverage on the airline with an “underweight” rating. Additionally, Citigroup downgraded its previous “strong-buy” rating to a “hold” rating on October 23, 2023.
Recent Financial Performance
Deutsche Lufthansa announced its latest earnings results on October 30, revealing an earnings per share (EPS) of $0.95 for the quarter. This figure exceeded analysts’ consensus estimate of $0.94 by $0.01. The company reported a net margin of 4.76% and a return on equity of 17.19%. Total revenue for the quarter reached $13.06 billion, surpassing the anticipated $12.98 billion. Research analysts project an EPS of $0.87 for the current fiscal year.
Institutional Investments Surge
In an interesting development, GAMMA Investing LLC significantly increased its stake in Deutsche Lufthansa by 892.5% during the second quarter of 2023, according to its recent 13F filing with the Securities and Exchange Commission. The investment firm acquired an additional 8,336 shares, bringing its total holdings to 9,270 shares, valued at approximately $78,000 at the end of the reporting period.
Deutsche Lufthansa AG continues to be a major player in the aviation sector, operating through three primary segments: Passenger Airlines, Logistics, and Maintenance, Repair, and Overhaul Services (MRO). The Passenger Airlines division offers services to customers of Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines, and Eurowings.
As the airline navigates a complex market landscape, investor sentiment and analyst recommendations will play a crucial role in shaping its future performance.
