High Returns on the Horizon: Lufthansa Bonus Certificates with 18% Potential
Lufthansa faces a potential setback, estimated at a probability of 18%.
Going for the sky and potentially bagging a handsome profit? Lufthansa bonus certificates could be your ticket to high returns, all while keeping your investment safe from long-term lows.
After the turbulent year of 2025, Lufthansa shares have manageably recovered from their losses. While they've reached 6.33 euros at present, the experts at UBS believe their value could go even higher. If the Deutsche Lufthansa share surpasses certain expectations and holding on to this belief, investors might find attractive structured bonus certificates captivating.
The Investment Idea
Investors who anticipate the Lufthansa share to maneuver above its long-term lows below 5 euros during the next few months, despite uncertainties linked to US trade issues, may find Lufthansa bonus certificates an appealing prospect.
These structured products offer the chance to reap high yields not only when Lufthansa share prices rise significantly but also when they remain stagnant or drop slightly. In exchange for these enticing sideways opportunities, certificate investors need to forego the unlimited profit potential of a direct equity investment and regular dividend payments.
How it Works
Lufthansa bonus certificates with a cap are financial structured products connected to Lufthansa's stock, restraining downside risk and capping maximum returns. These certificates usually come with:
- A bonus level: a pre-determined price threshold of Lufthansa shares
- A cap: the maximum price level of Lufthansa shares at which the payout is capped
Key Facts
The BNP Paribas bonus certificate with a cap on the Lufthansa share (ISIN: DE000PG6H9X9) offers a bonus level of 8.50 euros with a cap on the potential payout. The valuation date for the certificate is on June 19, 2026. At a Lufthansa share price of 6.33 euros, investors can acquire the certificate for 7.18 euros.
Chances
Since certificate holders currently pay 7.18 euros for the certificate, it promises a potential gross return of 18.38 percent (equivalent to 17 percent per year) by June 2026, provided that the share price never drops by 28.91 percent or below to 4.50 euros.
Risks
If the Lufthansa share touches the cap of 4.50 euros by the valuation date, the certificate will settle at the actual closing price of the Lufthansa share on the valuation date. If this is below 7.18 euros, investors will face a loss.
This article does not constitute any recommendation to buy or sell Lufthansa shares or investment products based on Lufthansa shares. No liability is assumed for the accuracy of the data.
Sources: ntv.de, Walter Kozubek, Zertifikate-Report | Facebook | Twitter | Whatsapp | E-Mail | Print | Copy Link
Tags: #Investment #Dax #StockTips #StockAnalysis #Lufthansa #Wealth #Securities
- The Lufthansa bonus certificates, with an 18% potential yield, could offer high returns for investors who anticipate the Lufthansa share to rise above its long-term lows, disregarding uncertainties related to US trade issues.
- The BNP Paribas bonus certificate with a cap on Lufthansa shares provides a bonus level of 8.50 euros with a cap on the potential payout, currently priced at 7.18 euros.
- If the Lufthansa share price remains above 4.50 euros by the valuation date in June 2026, investors in the Lufthansa bonus certificate will enjoy a potential gross return of 18.38%.
- However, investors should be warned that if the Lufthansa share touches the certificate's cap of 4.50 euros by the valuation date, the certificate will settle at the actual closing price, potentially leading to a loss for investors.
