MS selects its 2026 picks among European transport, double upgrades Lufthansa

Dsv A/S

07/01/2026 07:59

** Morgan Stanley names its five stocks to own in European transport space in 2026, double-upgrading Lufthansa LHAG.DE to "overweight" from "underweight"

** It notes several catalysts for Lufthansa's shares to move higher, such as turnaround program driving EBITDA growth, lower gearing supported by FCF that will "comfortably" fund dividend, and supportive outlook for revenue per available seat kilometer and cost per available seat kilometer

** Its top pick is British Airways owner IAG ICAG.L, rated "overweight", with upside driven by London's position as the leading global premium hub and capacity constraints on the transatlantic routes

** Among its other favourites it names "overweight"-rated DSV DSV.CO, Ferrovial FER.MC and Eiffage 

** On the other hand, it flags three stocks to avoid, such as EasyJet EZJ.L, Maersk MAERSKb.CO and  Flughafen Zuerich FHZN.S

(Reporting by Amir Orusov)

((Amir.orusov@thomsonreuters.com))