Lufthansa Stock: Analyst Sees Hidden Value in Technik Unit, Backs Buy

mwb Research reiterated a Buy rating on Deutsche Lufthansa (ETR: LHA) with a 21 euro price target in a note on Wednesday, arguing the market is overlooking the value locked inside its maintenance arm.

“Hidden value intact, LHT IPO a matter of timing,” analyst Jens-Peter Rieck wrote after the airline presented at the firm’s GS8 conference, confirming their bullish stance.

Rieck noted that Lufthansa management said it is in no rush to list Lufthansa Technik but did not rule it out, with mwb now expecting a flotation towards the end of the decade and flagging an activist campaign as a plausible accelerator.

The firm called Technik the main hidden value, describing it as the global number one independent maintenance, repair and overhaul provider, with 8 billion euros of 2025 revenue and 80% of sales from outside the group. The unit is targeting adjusted EBIT above 1 billion euros by 2030 at a margin over 10%, against 603 million euros and 7.5% in 2025.

“LHT alone is worth >40% of group EV standalone and the owned fleet covers >85%, which leaves the airline franchise and Cargo in the current valuation close to zero (mwb est.),” wrote Rieck.

The firm also said pricing is already turning as cheaper tickets sold before the Iran conflict roll out of the mix, while the working capital drag from short booking windows should reverse in 2027.