Lufthansa: Societe Generale is buying – 09/05/2022 at 15:54

(CercleFinance.com) – Societe Generale raised its recommendation on Lufthansa on Monday, which it changed from ‘hold’ to ‘buy’, with a price target raised from 6.7 to 7.9 euros.

In a research note, the French bank points out that the recovery in passenger traffic enjoyed by the German airline is set to continue.

“We believe that Lufthansa’s results will continue to improve with the continued rebound in traffic until the summer of 2023, after an already successful summer of 2022,” said SG in its study.

The establishment explains that the carrier’s performance should benefit from the appreciation of its yields, its capacity discipline, its high load factors as well as the easing of oil prices once the shock of the crisis. past inflation.

‘Towards the end of winter, on the back of strong bookings and robust yields, the share price could react very quickly, and we recommend that investors position themselves for a rotation in favor of value’, explains SocGen.

The bank says its upgrade is also based on valuation issues, in this case an enterprise value to EBITDA ratio of just 4.4x.

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