(News Bulletin 247) – Oddo BHF maintains its ‘outperformance’ rating on Lufthansa shares, with an unchanged price target of 12.5 euros.
‘In our eyes, the acquisition of a 41% stake in ITA is an excellent operation for the group’, underlines the analyst who specifies that with ITA, Lufthansa is accelerating on the 3rd most important market in Europe with the contribution of a market share of c27% and c13% on routes between Italy and Europe.
Estimating the operation as ‘strategic’ with ‘a clever structure’, Oddo BHF recalls that the amount of the transaction is limited to 325 ME and will be financed in the form of a capital increase accompanied by a new contribution of 250 ME from the Italian State.
“Beyond the valuation, Lufthansa has already returned to a lower level of net debt than in 2018, which allows it to seize opportunities,” concludes the analyst.
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