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On Friday, Bernstein analysts maintained their positive stance on Airbus SE (AIR:FP) (OTC: OTC:EADSY), reaffirming an Outperform rating and a price target of €180.00. The aerospace giant, with a market capitalization of $135 billion and a prominent position in the Aerospace & Defense industry, concluded 2024 on a strong note, particularly in terms of Free Cash Flow (FCF), though its delivery guidance for 2025 is conservative at 820 units, factoring in challenges from Spirit AeroSystems (NYSE:SPR). According to InvestingPro analysis, the stock is currently trading near its Fair Value, with analysts setting price targets ranging from $29.70 to $56.65.
Airbus reported fourth-quarter sales of €24.7 billion and earnings before interest and taxes (EBIT) of €2.6 billion, which were in line with expectations, although EBIT fell slightly short due to a charge in the Defense & Space segment. The company’s net income and FCF for the quarter exceeded forecasts, coming in at €2.4 billion and €5.3 billion, respectively, against a consensus of €2.1 billion for net income and €4.4 billion for FCF.
For the full year of 2024, Airbus achieved a 6% growth in sales, with total revenues reaching the guided figure. Despite a minor miss in the EBIT target of €5.5 billion, finishing at €5.4 billion, the company’s overall performance was robust. The Defense & Space segment’s underperformance resulted in a cumulative negative impact of €1.3 billion for the year.
The company’s delivery of 766 aircraft met its goal of "around 770" for the year, after CFM International prioritized LEAP engine deliveries to Airbus in November. Additionally, Airbus announced a special dividend of €1 per share, signaling confidence in its financial health.
Bernstein’s analysis underscores Airbus’s appeal as a long-term investment, citing high demand and a strong competitive position. However, they also note that supply chain issues continue to pose challenges for the company.
In other recent news, Airbus SE has been the subject of several notable developments. Jefferies downgraded Airbus from Buy to Hold, lowering the price target from €190 to €180, citing concerns over production ramp-ups and integration issues in its aerostructures business. The absence of a share buyback program and a weaker starting point for the Defense and Space segment were also highlighted as potential challenges. Meanwhile, Vertical Research Partners raised Airbus’s price target significantly from €17 to €189, maintaining a Buy rating. This upgrade reflects confidence in Airbus’s ambitious delivery goals and the strong demand for its A320 program, despite operational risks. Bernstein also reiterated an Outperform rating with a €180 price target, focusing on Airbus’s delivery guidance for 2025 amidst supply chain challenges. Additionally, Riyadh Air is in talks with Airbus for a potential order of up to 50 widebody aircraft, including the Airbus 350-1000, as part of its expansion strategy. Lastly, Leonardo’s CEO confirmed ongoing discussions with Airbus for potential alliances in the satellite industry, aiming to bolster Europe’s competitive position globally.
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