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RBC Capital raised its price target on Airbus SE (AIR:FP) (OTC:EADSY) stock to €190 from €185 on Thursday, while maintaining an Outperform rating on the European aerospace manufacturer. The company, currently valued at $147 billion, has shown strong momentum with a nearly 20% return year-to-date according to InvestingPro data.
The price target adjustment follows Airbus’s comprehensive business update presented at the 2025 Paris airshow, where the company provided updated mid-term targets for its defense and helicopter divisions, though it did not offer detailed mid-term commercial outlook.
RBC Capital noted that Airbus’s helicopter estimates appear conservative and highlighted that the company is guiding to approximately 1x free cash flow conversion rate while increasing its dividend payout rate.
The firm identified supply chain and macroeconomic factors as key risks for Airbus, despite what it described as "a very robust demand backdrop" for the aircraft manufacturer’s products.
RBC Capital expressed optimism about Airbus’s free cash flow potential, stating that "FCF as volume grows has significant room for upside," which factored into the decision to raise the price target while maintaining the Outperform rating.
In other recent news, LOT Polish Airlines has placed an order for 40 Airbus A220 aircraft, with options to expand the order to 84 jets. This significant fleet expansion was announced at the Paris Airshow. Meanwhile, Airbus has been the subject of several analyst updates. Citi downgraded Airbus stock from Buy to Neutral, citing currency exposure as a key factor affecting the company’s valuation. On the other hand, Bernstein SocGen reaffirmed their Outperform rating, noting potential major orders from China could bolster Airbus’s market position. Fitch Ratings upgraded Airbus’s Long-Term Issuer Default Rating to ’A’, highlighting expected improvements in profitability and cash flow. Berenberg also upgraded Airbus stock from Sell to Hold, adjusting the price target to EUR140, after reassessing the company’s future performance. These developments reflect a dynamic period for Airbus, with analysts and investors closely watching the company’s strategic moves and market conditions.
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