MW:Goldman downgrades Lufthansa, Ryanair to neutral
By Simon Kennedy
LONDON (MarketWatch) -- Goldman Sachs on Tuesday downgraded Deutsche Lufthansa AG DE:LHA +3.05% and Ryanair Holdings PLC IE:RY4B +1.56% to neutral from buy and cut its earnings estimates for the sector to reflect lower economic growth forecasts and disappointing unit revenue growth so far this year. "The demand picture remains tough. We expect no improvement in consumer demand, which remains sluggish overall and weak in southern Europe. There are increasing signs that corporate travel spend is moderating, with the Goldman Sachs travel spend index now negative for the first time since mid-2009," the broker said.
