Lufthansa plans to reposition itself but share price plummets again

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When the shareholders of the largest European airline in terms of sales come together for the Annual General Meeting on May 5, the meeting will take place virtually due to the contact restrictions in the wake of the Corona pandemic. The lectures will be streamed, shareholders can submit their questions in advance and vote digitally after registration.

But these are really difficult times for the shareholders of Lufthansa. The DAX corporation burns several million every day due to the corona shutdown. The upcoming capital increase is burdening. In addition, there are now increasing numbers of negative analyst studies – today with price targets of EUR 2 and EUR 3.00.

For example, Société Générale downgraded Lufthansa stock from “Buy” to “Sell” and cut the target share price from EUR 11.00 to EUR 3.00. Kepler Cheuvreux sees the fair value of the DAX stocks only at 2.00 euros – previously it was 9.00 euros.

Under this pressure, the stock collapses again in today’s trading. With a minus of seven percent to a little more than 7.20 euros, the Lufthansa paper is now at its lowest level since 2003. Whoever bought the share at 29 Euros must be crying now.