LHA:DEU- Embedded Expectations Analysis - 2019 02 04
Deutsche Lufthansa AG (LHA:DEU) trades near recent averages relative toUAFRS-based (Uniform) Earnings with a 16.2x Uniform P/E, implying bearish expectations for the firm. Additionally, management may be concerned about the sustainability of recent performance, increasing CASK, Eurowings growth and positioning, and competitive pressures
Specifically, management may lack confidence in the sustainability of strong performance in Network Airlines and Aviation Services, and may be concerned about their ability to sustain EBIT performance. Additionally, they may be concerned about the potential for continued increases in CASK, and may lack confidence in their ability to mitigate these costs. Furthermore, they may have concerns about their ability to sustain increases in Eurowings aircraft and employees, and may be exaggerating its position as one of Europe's biggest point-to-point carriers and its position in German airports. Finally, they may have concerns about Italy's political environment, and might be downplaying competitive pressures in Vienna
Deutsche Lufthansa is an aviation group based in Germany. Co. maintains global operations and a total of more than 500 subsidiaries and associated companies. Co. operates in five major business segments: scheduled passenger air traffic ("Passenger Airline Group"); scheduled airfreight services ("Logistics"); maintenance, repair and overhaul ("MRO"); information technology ("IT Services") and catering ("Catering").
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