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On Wednesday, RBC Capital Markets reiterated their positive stance on Airbus SE (AIR:FP) (OTC: OTC:EADSY) shares, maintaining an Outperform rating and a price target of EUR185.00. During a recent two-day series of investor meetings hosted by RBC Capital, featuring Airbus’s IR VP Olivier Prebay, the main topic of discussion centered on the company’s delivery outlook for the year 2025. Investors were particularly interested in the anticipated soft deliveries in the first half of the year, followed by a stronger performance in the second half.
Airbus is currently navigating through some challenges, including engine risks associated with the A320 family of aircraft and structural issues with the A350. Despite these hurdles, the company is optimistic about an acceleration in delivery growth starting in 2026. This forecast has led investors to adopt a more constructive view on the long-term free cash flow (FCF) potential, which is expected to benefit from higher delivery volumes. Additionally, Airbus’s exposure to the defense sector is seen as an incremental positive factor by investors.
However, there are concerns about the execution of strategies related to SPR, a company previously owned by Airbus, which adds an element of risk. RBC Capital’s analysts have decided to maintain their Outperform rating and their price target of EUR185.00, reflecting confidence in Airbus’s future performance despite the current challenges.
The aerospace giant’s stock performance will likely continue to be influenced by its ability to manage these ongoing risks and deliver on its projected growth. The company’s progress in resolving the engine and structural issues, as well as its strategic decisions regarding former assets like SPR, will be closely watched by investors and analysts alike.
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