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On Thursday, RBC Capital Markets sustained its positive stance on Airbus SE (AIR:FP) (OTC: OTC:EADSY), maintaining an Outperform rating and a price target of €185.00. Following a sell-side dinner hosted by Airbus in London, RBC Capital analyst Ken Herbert shared insights on the company’s current position and future prospects. The company’s stock has shown strong momentum, gaining nearly 28% over the past six months, though InvestingPro analysis indicates it’s currently trading at Fair Value. Airbus is poised to capitalize on the increased defense spending in Europe, which is receiving strong political support. Management also expressed confidence in their ability to navigate the anticipated acquisition of the SPR mid-2025 work package, which could be finalized in the coming weeks.
Airbus is currently facing challenges and opportunities within the commercial aerospace supply chain. With a robust market capitalization of $147 billion and a healthy current ratio of 1.15, the company appears well-positioned to handle these challenges. Despite recent issues, the company’s management remains confident that these will not affect their planned deliveries for 2025, supported by revenue growth of 5.8% in the last twelve months. The increased defense budgets in Europe are expected to benefit Airbus, as the continent has been actively working to bolster its defense capabilities.
The potential signing of the SPR deal is a significant development for Airbus, as it would secure a critical work package for the mid-2025 timeline. This acquisition is seen as a strategic move that could enhance the company’s market position and operational capabilities.
Airbus’s optimism is also reflected in its approach to the supply chain hurdles, a key factor for production and delivery schedules. The company’s proactive measures and strategic planning are aimed at mitigating any potential disruptions to their delivery plans.
In summary, RBC Capital’s reiteration of the Outperform rating and €185 price target for Airbus stock underscores the firm’s belief in the aerospace giant’s strategic initiatives and resilience amidst industry challenges. The analyst’s comments following the sell-side dinner highlight Airbus’s potential for growth, supported by favorable political backing for defense spending and strategic acquisitions in the pipeline. InvestingPro data reveals multiple positive indicators, including strong cash position and consecutive dividend increases. Subscribers can access 8 additional ProTips and comprehensive financial metrics to make more informed investment decisions.
In other recent news, Japan Airlines (JAL) announced plans to expand its fleet by purchasing an additional 17 Boeing (NYSE:BA) 737-8 aircraft, complementing a previous order from 2023. The airline also intends to introduce 11 Airbus A321neo aircraft to replace its current Boeing 767s. Additionally, JAL plans to incorporate 10 Boeing 787-9 and 20 Airbus A350-900 planes into its international operations. Meanwhile, Airbus has secured 118 commitments for its multimission helicopters, including 63 firm orders, at a U.S. trade show. The newly unveiled H140 model has attracted significant interest, particularly from emergency services in the U.S. and Europe. Furthermore, Airbus reported an 18% drop in aircraft deliveries for the first two months of 2021, delivering 65 aircraft during this period. Despite this, the company received 14 new orders in February, bringing its net orders for the year to 65. Bernstein analysts have maintained an Outperform rating for Airbus, with a price target of €180, highlighting the company’s strong cash flow and competitive position.
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