<div id="readability-page-1"><div><p>Deutsche Lufthansa (XTRA:LHA) jumped after Kepler Cheuvreux raised its rating to Buy, highlighting a turnaround plan that is mostly scheduled for execution next year along with improving conditions in long-haul travel.</p> <p>See our latest analysis for Deutsche Lufthansa.</p> <p>The rating upgrade lands on top of already strong momentum, with a 37.48% year to date share price return and a 33.38% one year total shareholder return suggesting confidence in Lufthansa’s multi year recovery story.</p> <p>If this rebound in air travel has your attention, it could be a good moment to explore other aerospace and defense stocks that might benefit from similar structural tailwinds.</p> <p>Yet even after a 37% year to date surge, valuation signals such as a large intrinsic discount hint at further upside and raise the question: is Lufthansa still a buy, or is future growth already fully priced in?</p> <h2>Most Popular Narrative: 7.2% Overvalued</h2> <p>Deutsche Lufthansa's widely followed narrative points to a fair value slightly below the last close, framing the current rally as already pricing in much of the recovery.</p> <blockquote> <p><em>The market appears to be pricing in sustained, above-trend revenue growth for Lufthansa driven by elevated post-pandemic travel demand, continued international expansion (e.g., ITA Airways integration and additional wide-body deliveries), and successful upselling to premium and ancillary products, despite mounting evidence of softening yields and mixed forward bookings in key markets, which could undercut top-line expectations.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Curious how modest growth, shifting margins, and a lower risk premium can still justify a premium earnings multiple for a legacy airline? Unpack the full narrative to see which forecast levers really carry this valuation.</p> <p><strong>Result: Fair Value of $7.89 (OVERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, if fleet modernization and the turnaround plan deliver faster margin gains, Lufthansa’s earnings power could surprise consensus and challenge the overvaluation view.</p> <p>Find out about the key risks to this Deutsche Lufthansa narrative.</p> <h2>Another View: Multiples Paint a Cheaper Picture</h2> <p>While the narrative suggests Lufthansa is 7.2% overvalued on fair value, its 6.2x price to earnings looks strikingly low against the 9.3x global airlines average, 12x peer average, and a 12.7x fair ratio, which may hint at upside potential if sentiment and earnings remain supportive.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/c2006d78-6853-4e48-bc8d-03acbfab6f7e/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/c2006d78-6853-4e48-bc8d-03acbfab6f7e/chart/pe-multiple-vs-industry"/><figcaption>XTRA:LHA PE Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own Deutsche Lufthansa Narrative</h2> <p>If your perspective differs or you prefer to dig into the numbers yourself, you can build a tailored story for Lufthansa in minutes using Do it your way.</p> <p>A great starting point for your Deutsche Lufthansa research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.</p> <h2>Looking for more investment ideas?</h2> <p>Before you move on, use the Simply Wall St Screener to quickly surface high conviction stock ideas tailored to different strategies so you are never short of opportunities.</p> <ul> <li>Capture potential bargains with strong cash flow support by scanning these 906 undervalued stocks based on cash flows that may be trading below what their fundamentals imply.</li> <li>Ride the next wave of intelligent automation by targeting these 30 healthcare AI stocks pushing data driven breakthroughs in diagnostics, treatment, and patient care.</li> <li>Strengthen your income stream by focusing on these 13 dividend stocks with yields &gt; 3% that aim to deliver reliable yields above cash and many bond alternatives.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

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<p>Deutsche Lufthansa (XTRA:LHA) saw a share price increase after Kepler Cheuvreux upgraded its rating to Buy, citing a turnaround plan and improved long-haul travel conditions. Despite a 37.48% year-to-date share price return, the stock is considered 7.2% overvalued. However, its 6.2x PE ratio is lower than the global airlines average, suggesting potential upside. The market anticipates sustained revenue growth driven by post-pandemic travel demand and international expansion. The article advises further analysis to understand the valuation and potential risks.</p>

Evaluating Lufthansa (XTRA:LHA) After Kepler Cheuvreux’s Buy Upgrade and Turnaround Optimism