Lufthansa stock had worked its way out of the low of the end of October after strong quarterly results and was trading in December partly well above the 8 euro mark again. However, in recent weeks, the stock has once again seen a slight downward trend, and the start of the year 2024 has not been successful.

In morning trading on the first trading day of the year, the Lufthansa stock is trading around 2 percent lower and below 8 euros again (as of January 2nd, 2024, around 12 p.m.). The main reason for this is the downgrade by Citigroup. The US bank has changed its recommendation for Lufthansa stock from Hold to Sell.

Lufthansa: Analysts are not in agreement The analyst opinions on Lufthansa stock in December could not be more different. While UBS raised the price target from 14 to 15 euros just before Christmas – almost doubling the target price – other analyses are much more critical.

For example, in early December, JPMorgan sharply lowered the target for Lufthansa stock from 12.50 to 7 euros. Some are expecting weaker margins in 2024 than in the past. This is also the direction of the latest analysis by Citigroup, which downgraded its recommendation from Hold to Sell.

This move was justified, among other things, by Citigroup’s expectation of a weaker development of ticket prices, particularly in long-haul flights. The analyst also views the possible end of the post-corona recovery with skepticism.

Lufthansa stock: There is still room for growth in the long term The start of the new stock market year 2024 has failed: Lufthansa stock is trading around 2 percent lower in morning trading, and on a yearly basis, the stock has barely moved. However, the latest figures from Q3 speak a different language, as Lufthansa had a record quarter between July and September.

In 2023, Lufthansa improved its margin thanks to higher ticket prices and achieved a net profit of 1.2 billion euros in the third quarter. The valuation, with a P/E ratio of around 5, is more than fair. In the long term, Lufthansa stock has considerable potential, but there are some question marks for the current year 2024.

Source: https://aktienscreener.com/