Stifel downgrades its recommendation on Lufthansa from 'buy' to 'hold', with a price target reduced from 11 to seven euros, considering that 'depressed short-term prospects overshadow the still solid medium-term outlook'.

The broker points to the impact of the knock-on effects of first-quarter strikes on second-quarter unit revenues, while delays in B787 deliveries continue to weigh on unit costs excluding fuel.

Also, Stifel cuts its EBIT estimate for Lufthansa by 15% to €1.84 billion for 2024 (versus a guidance of €2.2 billion). For the second quarter, its estimate of 565 million appears to be around 35% below consensus.

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