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Investing.com - Kepler Cheuvreux downgraded Airbus SE (EPA:AIR) from Buy to Hold on Thursday, while simultaneously raising its price target to EUR214.00 from EUR183.00.
The European aerospace manufacturer reported strong third-quarter results, with sales exceeding expectations by 2-3% due to stronger-than-anticipated Helicopter division performance. The company’s EBIT beat forecasts by more than 7%, bolstered by solid margins in both Helicopter and Defence segments, alongside lower-than-expected R&D spending in the Commercial Aircraft division.
Airbus maintained its 2025 guidance, projecting "around 820 deliveries, around EUR 7bn EBIT and around EUR 4.5bn FCF," which depends on a significant delivery increase in the latter part of the year. The company reported 32 gliders in September, with engine deliveries expected to address this backlog in coming weeks.
The outlook for 2026 remains stable despite some adjustments. The postponed target for reaching 14 units per month and breaking even for the A220 program is offset by a 1-cent improvement in hedge rate, while strong momentum in other divisions provides additional support amid a solid defense market backdrop.
Despite these positive developments, Kepler Cheuvreux justified its downgrade by noting that Airbus shares have "rallied hard" since what it termed "liberation day," suggesting that much of the good news is already reflected in the current share price, even with the analyst firm’s reduced weighted average cost of capital (WACC) assumption of 8%.
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