Oddo BHF reiterates its 'underperform' rating on Lufthansa, with a price target slightly reduced from €5.5 to €5.3, 'pending signs of a recovery in CASK in a less dynamic environment'.

'The deceleration in growth is forcing Lufthansa to make further efforts to make its cost structure more competitive, which we still doubt. In addition, its high exposure to Asia-Pacific is weighing on RASK", the analyst believes.

However, the research firm believes that the German airline's healthy balance sheet should preserve the dividend, and that at three times EV/EBITDA 2025, its valuation 'still offers a certain floor'.

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