JPMorgan downgrades Lufthansa and lowers price target - expert warns against capacity expansion and relies on Ryanair instead

JPMorgan downgrades Lufthansa and lowers price target - expert warns against capacity expansion and relies on Ryanair instead

According to a report by www.finanzen.net The US bank JPMorgan downgraded Lufthansa shares twice from “Overweight” to “Underweight” and lowered the price target from 12.50 to 7.00 euros. Analyst Samuel Bland warns of significant capacity expansions in the European transport and logistics sector, which could put pressure on company returns.

Furthermore, the Lufthansa Group and the air taxi startup Lilium have announced a possible partnership for the operation of electric vertical take-off aircraft (eVTOL) in Europe. These are electrically powered aircraft that can take off and land vertically. According to Lilium's internal estimates, the European market will need around 9,200 eVTOL aircraft by 2035.

The US investment bank Goldman Sachs has also raised the price target for Lufthansa from 10.20 to 10.30 euros. However, despite this update, Goldman Sachs continues to view the rating as “Neutral”.

The Lufthansa share ultimately fell by 2.05 percent to 8.41 euros after an initial reaction that had fallen more significantly.

These developments suggest that the market cap is falling and a negative trend could be imminent for Lufthansa shares. The US investment bank's reduced price targets and "underweight" rating as well as uncertainty regarding the future partnership with Lilium may further weaken investor confidence in Lufthansa.