Deutsche Lufthansa Stock: Shares Dip Amid Strike Disruption

Deutsche Lufthansa shares experienced a noticeable decline in early trading, dropping to €7.93, down 0.7 percent from the opening price of €8.00. This downturn coincides with widespread strike action across 13 German airports, including major hubs Frankfurt and Munich, resulting in approximately 3,400 canceled flights and affecting over 510,000 passengers. Despite current challenges, the airline's stock has shown remarkable recovery from its August 2024 low of €5.38, representing a 32 percent increase year-to-date. The company recently posted impressive fourth quarter results with earnings per share jumping to €0.46, compared to just €0.06 in the previous year, while revenue increased by 7.8 percent to €9.44 billion.

Analyst Outlook and Investment Perspective

Financial experts project earnings of €1.09 per share for fiscal year 2025, with upcoming first quarter results expected on April 29. However, analysts maintain a cautious stance, with the average price target of €7.52 sitting below current trading levels. The expected dividend of €0.244 per share for the current fiscal year represents a decrease from the €0.300 paid in 2023. Meanwhile, institutional investor activity shows increased confidence, as major asset managers have recently increased their stakes in the airline, despite ongoing operational challenges and cost pressures facing the carrier.