Deutsche Lufthansa (OTCMKTS:DLAKY) Downgraded to "Strong Sell" Rating by Citigroup

Key Points

• Citigroup downgraded Deutsche Lufthansa from “hold” to “strong sell,” adding to a broadly bearish analyst backdrop for the airline stock.
• Other major firms have also turned negative recently, including Goldman Sachs, Morgan Stanley, and Barclays, and the current consensus rating is “Reduce.”
• Lufthansa’s latest quarterly results missed expectations, with EPS of -$0.64 versus an estimated -$0.29, even as revenue came in roughly in line with forecasts.

Deutsche Lufthansa (OTCMKTS:DLAKY - Get Free Report) was downgraded by equities researchers at Citigroup from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

A number of other equities analysts also recently commented on DLAKY. The Goldman Sachs Group downgraded shares of Deutsche Lufthansa from a "neutral" rating to a "sell" rating in a research note on Friday, March 20th. Zacks Research upgraded Deutsche Lufthansa from a "strong sell" rating to a "hold" rating in a report on Monday, June 15th. Morgan Stanley lowered Deutsche Lufthansa from an "equal weight" rating to an "underweight" rating in a research report on Tuesday, May 26th. Finally, Barclays lowered shares of Deutsche Lufthansa from an "equal weight" rating to an "underweight" rating in a research report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat.com, Deutsche Lufthansa presently has an average rating of "Reduce".

Deutsche Lufthansa Stock Performance

Shares of OTCMKTS:DLAKY opened at $10.60 on Wednesday. The company has a market capitalization of $12.74 billion, a price-to-earnings ratio of 7.07, a PEG ratio of 0.68 and a beta of 0.96. Deutsche Lufthansa has a 12 month low of $7.91 and a 12 month high of $11.53. The firm's 50-day moving average is $9.92 and its 200 day moving average is $9.81. The company has a current ratio of 0.81, a quick ratio of 0.73 and a debt-to-equity ratio of 0.94.

Deutsche Lufthansa (OTCMKTS:DLAKY - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The transportation company reported ($0.64) EPS for the quarter, missing the consensus estimate of ($0.29) by ($0.35). The company had revenue of $10.28 billion during the quarter, compared to analysts' expectations of $10.29 billion. Deutsche Lufthansa had a return on equity of 13.46% and a net margin of 3.83%. Research analysts predict that Deutsche Lufthansa will post 1.19 EPS for the current year.

Institutional Trading of Deutsche Lufthansa

An institutional investor recently bought a new position in Deutsche Lufthansa stock. Sterling Capital Management LLC bought a new stake in Deutsche Lufthansa AG (OTCMKTS:DLAKY - Free Report) in the 1st quarter, according to its most recent filing with the SEC. The fund bought 24,628 shares of the transportation company's stock, valued at approximately $204,000.

Deutsche Lufthansa Company Profile

Deutsche Lufthansa AG is a leading global aviation company headquartered in Cologne, Germany, and is recognized as one of the world's largest airline groups. Founded in its modern form in 1953, the company traces its heritage back to the original Deutsche Luft Hansa established in 1926. Lufthansa operates passenger and cargo services under its flagship brand, as well as through numerous subsidiaries including Swiss International Air Lines, Austrian Airlines, Brussels Airlines and the low-cost carrier Eurowings.

The group's passenger network spans Europe, the Americas, Asia, Africa and the Middle East, with primary hubs at Frankfurt Airport and Munich Airport.

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