Score a Potential 18% with Lufthansa Bonus Certificate: Here's the Deal
Lufthansa faces a 18% likelihood of an uncertain outcome
Hey there! In case you missed it, Lufthansa's stock has been struggling to recover from its losses in the 2025 market crash. But fear not, savvy investors, because a bonus certificate with a cap on Lufthansa shares could yield a whopping 18% if things turn around!
The Situation: Lufthansa's Recovery
Remember when Lufthansa shares were soaring and hit a 12-month high of 8.16 euros back in March 2025? It seemed like smooth sailing for the airline industry. Fast forward to April, and the share was plummeting to 5.70 euros due to global market pressures. Recovery has been sluggish, with the share currently trading at 6.33 euros – not quite back to where it was.
Experts at UBS, however, remain optimistic about Lufthansa's future, reiterating their buy recommendation and lowering their price target to 8.85 euros.
Strategizing Your Investment: Bonus Certificates with a Cap
If you think Lufthansa shares will hold steady, though the uncertainties caused by US trade issues may drag them down temporarily, then bonus certificates with a cap could be your golden ticket. These structured products offer high yields not just in a rising market, but also in a sideways or falling market. The trade-off is that you'll miss out on superior profit potential and dividend payments from owning the shares outright.
How It Works: Bonus Certificates with a Cap Explained
A bonus certificate with a cap works like this: if Lufthansa shares never drop below the 4.50 euros barrier by the certificate's maturity date, you'll walk away with a 8.50 euros bonus on June 25, 2026. The exact price for the BNP Paribas bonus certificate with a cap on Lufthansa is 7.18 euros.
The Odds: Risks and Rewards
With a purchase price of 7.18 euros, you stand to make a gross return of 18.38% (equivalent to 17% annually) by June 2026, as long as Lufthansa shares stay above 4.50 euros.
Remember, there's always a chance that Lufthansa could touch the 4.50 euros barrier, which means your certificate would be redeemed based on the closing price of Lufthansa shares on the redemption date. If it's less than 7.18 euros, you'll take a loss.
A Word of Caution
This article is not a call to invest in Lufthansa shares or bonus certificates. It's essential to consult a financial advisor and stay updated with the latest market data for the most informed decisions.
Happy investing!
Investment, Dax, Stock Tips, Stock Analysis, Lufthansa, Wealth, Securities
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The Nitty-Gritty: Risks and Benefits of Bonus Certificates
While bonus certificates can provide attractive returns and some level of protection against losses, they come with risks. For Lufthansa shares specifically, market volatility, the cap on returns, and default risk are some concerns investors should consider. On the flip side, the potential for leverage, downside protection, and fixed income make bonus certificates appealing options for many.
With the current market uncertainties and potential return specifics of Lufthansa-tied bonus certificates unclear, it's vital to consult financial advisors and market data platforms for the most accurate and up-to-date information. Always do your research before making an investment!
- In the realm of personal finance, it's crucial to weigh the risks and benefits of structured products like bonus certificates, especially when tied to shares of companies like Lufthansa, given their potential for leverage and downside protection.
- Employment policies within financial institutions, such as brokerages and investment firms, should also address the disclosure of risks associated with bonus certificates, ensuring that clients are well-informed before making investments in products like Lufthansa's bonus certificates with a cap.
