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Two German Stocks Gaining from the Aviation Recovery

Two German Stocks Gaining from the Aviation Recovery

The aviation sector and its stocks are back in full recovery mode after being hit by the pandemic and lockdowns. German aviation players Deutsche Lufthansa (DE:LHA) and Airbus Group (DE:AIR) are experiencing the same ride. These companies have posted solid growth in their recent earnings and have gained analysts’ attention.

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Let’s have a look at the details.

Deutsche Lufthansa AG (Lufthansa)

Lufthansa is a leading airline in Europe with worldwide operations. It is also the flagship airline of Germany.

Along with the recovery in passenger numbers and operations, the share price has also regained momentum in the last year. The stock has gained close to 60% in the last six months. The company’s Q3 earnings and its solid performance in the first nine months of 2022 was the major driving factor.

For the first three quarters of 2022, the company posted a 118% growth in revenues of €23.9 billion. For the third quarter, this growth was 93% at €10 billion in revenues. Lufthansa was also able to turn around its net loss of €1.8 billion after the first three quarters of 2021 to a net profit of €484 million in 2022. The numbers were all the result of a huge increase in passengers and flights during the year.

Moving forward, the airline is targeting to expand its operations, especially covering the shorter routes in Europe. However, the recovery on the longer routes and the business class will be slower in the near term.

Will Lufthansa Stock Go Up?

Lufthansa’s stock has a Hold rating on TipRanks with an average target price of €8.23, which is 15% lower than the current level. Due to tremendous growth in the share prices in last few months, the analyst don’t see much scope of growth. But, the long-term prospects are bullish.

The stock has a wide coverage from analysts, with a total of 15 recommendations. It includes five Buy, eight Hold, and two Sell ratings.

Analyst Yan Derocles from Oddo BHF recently published a report on European airlines with a bullish outlook. Post that he has upgraded his rating from Hold to Buy on Lufthansa stock. He said, “industry recovery has been confirmed,” which will boost the performance of airlines.

Airbus Group SE

Airbus Group is a manufacturing company…

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