Lufthansa share: New analyst assessment slows recent upward trend - How do investors react?

Lufthansa share: New analyst assessment slows recent upward trend - How do investors react?

According to a report by www.deraktionaer.de, the US bank JPMorgan has double-downgraded Lufthansa shares. The price target was reduced by 44 percent to 7 euros. Analysts fear that significant capacity expansions in an environment of lower economic growth could put pressure on the returns of European network airlines. Instead, JPMorgan is now relying on the low-cost airline Ryanair.

This gradation could have both short- and long-term effects on the market and the financial industry. Lufthansa shares could come under pressure as a result of the downgrade, which could lead to a fall in the share price and weaken investor confidence. This could also have an impact on other airlines, as the reasoning behind the downgrade applies to the entire industry.

JPMorgan's downgrade could also hurt overall investor confidence in airlines and lead investors to invest more in other industries or companies outside of aviation. This could lead to greater volatility in the stock market.

The long-term impact of this downgrade could be that airlines will need to take steps to improve profitability and reconsider capacity expansions to improve returns. This could lead to changes in business strategy and investment decisions.

Overall, JPMorgan's downgrade of Lufthansa shares may lead to short-term turbulence and long-term strategic adjustments in the aviation industry. Investors should therefore keep a close eye on developments in this sector.