Stifel has raised its recommendation on Lufthansa from 'sell' to 'hold', with the target price raised from €4.5 to €6.5, ahead of the German airline's third-quarter publication.

"Rationalized capacity and lower fuel costs have brightened the near-term outlook for the sector", says the broker, who therefore sees upside potential for this year's estimates.

For 2025, however, we believe that the market could end up being too enthusiastic about lower fuel costs, ignoring its 'pass-through' characteristic over the medium to long term.

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