Deutsche Lufthansa (DLAKY) was raised to a Zacks Rank #1 (Strong Buy) following three straight upward revisions to its consensus earnings estimates for the current fiscal year. Analysts now expect the carrier to report adjusted EPS of €2.15 for 2024, up from €1.98 a month ago—a 8.6% upgrade that reflects improving load factors and stabilization in fuel costs. The revision also lifted 2025 EPS estimates by 6.3%, underscoring confidence in a robust summer travel season and ongoing capacity discipline. Given the Zacks system’s historical accuracy—stocks moving higher nearly 80% of the time over the following 90 days after a Rank #1 upgrade—investors may see further upside as Lufthansa leverages fleet modernization and ancillary revenue initiatives.

Despite trading in line with its five-year average EV/EBITDA multiple of 5.2x, DLAKY exhibits improving top-line trends: revenue per available seat kilometer (RASK) is projected to grow 4.5% year-over-year in Q2, driven by premium cabin upsell programs and intercontinental network expansion. Cash flow from operations climbed to €3.1 billion in the trailing twelve months, bolstering the balance sheet and supporting a return to quarterly dividends later this year. With free cash flow yield above 7% and net debt/EBITDA down below 2.5x, the stock’s current valuation appears to understate the airline’s recovery trajectory and margin upside from ongoing cost-optimization measures.