Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

On Tuesday, European stocks hit their highest record since the beginning of March. The German stocks were leading the way during the Tuesday trading session as carmakers like Volkswagen, Daimler and BMW were among the best performers. Lufthansa’s shares also surged 6.3% after the company agreed on the terms for a government bailout.

The bailout deal was negotiated last week, with the German airline agreeing to its terms on Friday. The board of Lufthansa voted in favor of the government’s bailout deal, which was estimated at €9 billion ($10 billion). The reason why the German airline agreed on the terms of the aid package is the fact that the European Commission compromised on some of the conditions for approval.

According to a preliminary agreement, Lufthansa will give up 24 of its take-off and landing slots at Frankfurt and Munich airports and will transfer them to other airlines. This will be the measure taken by the German government to ensure the same fair environment for business competitors.

Originally, the company was asked to transfer more than 24 slots in order to receive the government’s bailout package. However, the board of Lufthansa refused to accept these terms and the agreement was reached only after the European Commission compromised on the conditions of the bailout.

The 24 slots at the Frankfurt and Munich airports will be reallocated after an auction. Only European airlines that do not operate from these airports will be able to participate in the bidding. Some believe that Ryanair and easyJet are among the companies that are interested in the slots.

Analyst stock price forecast and recommendation

According to CNN Money, a 12-month price forecast for the Deutsche Lufthansa AG stock shows that 18 analysts have a median target of $6.73, with a high estimate of $20.02 and a low estimate of $2.72. The median estimate represents a -37.63% decrease from the last price of $10.79.

The same media offers the recommendations of 20 investment analysts who have a consensus rating of “Sell” for the Deutsche Lufthansa AG stock. Out of all surveyed analysts, 11 rated the company’s stock as “Sell”, 4 as “Hold” and 1 – as “Buy”. About 3 analysts believe the stock has an “Underperform” rating and 1 ranked it as “Outperform”.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Adobe shares rise after reports on quarterly profit surpass predictionsAdobe shares rise after reports on quarterly profit surpass predictions US stocks surged nearly 2% in premarket trading Friday, recovering from the big dive on the previous day. Shares in Adobe Inc. surged 5.2% before the start of the trading session. The reason for the interest in the company is its report for […]
  • CAD/CHF confined in narrow range with Canada CPI in sightCAD/CHF confined in narrow range with Canada CPI in sight The CAD/CHF currency pair remained stuck in a tight trading range on Tuesday, as market players awaited the Canadian CPI inflation data for August due out later today.The median CPI inflation probably eased to 2.3% in August, according […]
  • Natural gas trading outlook: futures climb ahead of the EIA reportNatural gas trading outlook: futures climb ahead of the EIA report Natural gas futures were higher during early trade in Europe today, ahead of the US weekly inventories levels report. Analysts suggest another sizable gain for nat gas stocks, while weather patterns project more moderate weather for the US in […]
  • General Motors share price down, to build a manufacturing plant in IndonesiaGeneral Motors share price down, to build a manufacturing plant in Indonesia General Motors Co confirmed on Monday its plans to build a new manufacturing facility in Indonesia, a move that will put pressure on Japanese peers, which dominate the region.SAIC-GM-Wuling, a joint venture between GM China, Wuling Motor […]
  • Oil weekly recap, January 6 – January 10Oil weekly recap, January 6 – January 10 West Texas Intermediate crude rose by the most in over a month after a report by the Labor Department showed the US economy created the least jobs in almost three years, easing concerns the Federal Reserve will further reduce its bond […]
  • Forex Market: EUR/GBP daily trading forecastForex Market: EUR/GBP daily trading forecast Yesterday’s trade saw EUR/GBP within the range of 0.7084-0.7168. The pair closed at 0.7166, surging 1.06% on a daily basis, or the most considerable daily gain since July 23rd, when it appreciated 1.09%. The daily high has also been the […]