Oddo BHF reiterates its 'neutral' opinion on Lufthansa, but lowers its price target from eight to 6.9 euros, in the wake of a reduction in its estimates to 688 million euros in adjusted EBIT for the second quarter alone.

After a second quarter that was more disappointing than expected, the third is shaping up to be brilliant, but uncertainties remain for the fourth quarter, which was expected to concentrate most of the CASK reduction", warns the analyst.

The wage agreements certainly offer visibility until the end of 2026, but Lufthansa needs to demonstrate its ability to absorb this inflation to trigger a re-rating", he continues, noting that the stock is trading on an EV/EBITDA of 3.4 times in 2024 and 2.9 times in 2025.

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