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Investing.com - Deutsche Bank (ETR:DBKGn) raised its price target on Airbus SE (EPA:AIR) (OTC:EADSY) stock to €185.00 from €183.00 on Monday, while maintaining a Buy rating ahead of the NATO summit.
The NATO summit taking place Tuesday and Wednesday is expected to increase defense spending targets to 5% of GDP, which Deutsche Bank believes will benefit defense companies including Airbus.
The bank noted that as the United States shifts focus to the Indo-Pacific region, a capability gap is emerging in Europe for transport aircraft, tanker aircraft, and helicopters—areas where Airbus Defence and Space (ADS) is well-positioned to capitalize.
Deutsche Bank expects ADS’s growth and profitability to materialize after 2028, which would coincide with Airbus Commercial potentially reaching a plateau in its business cycle.
The firm also highlighted that Airbus remains affordably valued compared to both commercial and defense industry peers, with the slight price target increase reflecting improved margin expectations for the company’s Helicopter and Defence & Space divisions.
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