UBS Upgrades Lufthansa to ‘Buy’ with Target Price of €13.25

Lufthansa, the national airline of Germany, has been upgraded by Swiss financial services company UBS to “buy” from “neutral”, with a target price of €13.25. This new target price reflects a 29% increase from the current €10.26 price.

Reason for Upgrade

The upgrade was based on a combination of factors, including Lufthansa’s successful cost-saving measures, the potential for further cost reductions, and a positive outlook for the airline industry in general.

UBS analysts noted that Lufthansa had successfully implemented cost-saving measures and had outperformed competitors in this regard. They also believe that the airline has the potential for further cost reductions, particularly in terms of labor costs.

In addition, the analysts pointed to a positive outlook for the airline industry, with strong demand and an improving economic environment expected to drive growth in the coming years.

Impact on the Airline Industry

The upgrade of Lufthansa by UBS is significant for the airline industry as a whole. It suggests that investors are becoming more confident in the industry’s prospects, and that there is potential for further growth and profitability.

Furthermore, it adds to a growing body of evidence that the airline industry is recovering from the COVID-19 pandemic. While the pandemic has had a significant impact on the industry, there are signs that demand is beginning to recover, and that airlines are taking steps to reduce costs and improve efficiency.

Conclusion

In summary, the upgrade of Lufthansa by UBS is a positive sign for the airline industry, and suggests that there is potential for further growth and profitability. It is a reflection of the successful cost-saving measures that Lufthansa has implemented, as well as a positive outlook for the airline industry in general.

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