The US bank JPMorgan has given Lufthansa “Negative Catalyst Watch” status.
In a study available on Thursday, Lufthansa analyst Harry Gowers takes into account his skeptical expectations for the quarterly figures due at the beginning of March. He also lowered the price target from 5.50 to 5.00 euros and left the fundamental rating at “Underweight”. The expert sees the consensus estimate for operating earnings (EBIT) for 2025 in danger. The airline could disappoint the market with its outlook. Given the uncertain earnings recovery, Gowers fears that the stock could go even further downhill after the weak previous year.
Lufthansa places hybrid bond worth 500 million euros
Deutsche Lufthansa has raised fresh capital via the capital market. As the airline announced, an unsecured Euro hybrid bond with a total volume of 500 million euros was successfully issued on Wednesday. The bond bears interest at 5.25 percent per year and has a term of 30 years, but can be repaid by Deutsche Lufthansa after just six years, i.e. on January 15, 2031.
“The successful transaction at the beginning of the year underlines the trust of the capital markets in our company and confirms our broad access to various financing instruments,” said CFO Till Streichert. “The attractive market environment and high investor demand enabled the placement at advantageous financing conditions and the term of six years until the first repayment date complements our maturity profile in the best possible way.”
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(END) Dow Jones Newswires
January 09, 2025 04:24 ET (09:24 GMT)
The Lufthansa share temporarily fell 2.46 percent to 5.70 euros in XETRA trading.
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