Lufthansa Shares (ETR: LHA) Move Higher in Rare Double Upgrade

Lufthansa's shares (ETR:LHA) are trading higher today following a rare double upgrade from Morgan Stanley, as confidence in the airline's turnaround strategy grows. The positive shift in analyst sentiment has provided a further boost to the stock, now 52.95% higher over the past year.

The Lufthansa AG share price experienced a 1.95% increase, reaching €9.08 through the morning session. This upward movement follows Morgan Stanley's decision to upgrade Lufthansa from Underweight to Overweight, accompanied by a significantly raised price target of €9.30, up from the previous €5.40.

The investment bank's optimism is rooted in Lufthansa's comprehensive turnaround program, which they project will drive an impressive 20% annual EBITDA growth through 2027.

Morgan Stanley's revised outlook reflects a belief in Lufthansa's ability to execute its strategic initiatives. The turnaround program encompasses various measures aimed at optimizing costs, enhancing operational efficiency, and modernizing the airline's fleet. These efforts are expected to contribute significantly to Lufthansa's financial performance in the coming years.

This upgrade from Morgan Stanley aligns with a series of positive assessments from other financial institutions. Last month, Kepler Cheuvreux upgraded Lufthansa to “Buy,” setting a price target of €11.00, based on the company's €2.5 billion overhaul plan.

Similarly, JPMorgan revised its stance to “Neutral,” with a price target of €7.50, acknowledging improvements in the German economy and the benefits of Lufthansa's cost restructuring. Bernstein analysts adjusted their outlook on European airline stocks in December 2025, upgrading Lufthansa while downgrading International Airlines Group (IAG).

 The airline's ability to successfully implement its turnaround program and capitalize on favourable market conditions will be crucial in sustaining this positive momentum. While challenges remain, the overall outlook for Lufthansa appears to be improving, which may support the shares in the near term. Today's high of €9.25 reflects the highest price for Lufthansa shares since mid 2023.