EU and US could reach trade deal this weekend - Reuters
On Thursday, Vertical Research Partners significantly increased their price target on Airbus SE (AIR:FP) (OTC: OTC:EADSY) shares, adjusting the figure from €17.00 to €189.00, while reaffirming their Buy rating on the stock. Currently trading at $43.24 with a market capitalization of $136 billion, Airbus has emerged as a prominent player in the Aerospace & Defense industry. The adjustment reflects Vertical Research Partners’ confidence in Airbus’s future performance, despite acknowledging potential risks in the company’s operational strategy.
The aerospace giant’s ambitious goal to deliver approximately 820 aircraft by 2025 is seen as achievable by Vertical Research Partners, with their own forecast slightly lower at 815 units. With trailing twelve-month revenue of $75 billion and 6.6% revenue growth, Airbus demonstrates strong operational momentum. However, the firm expressed concerns about Airbus’s reliance on Spirit AeroSystems (NYSE:SPR) for the ramp-up of the A220 and A350 programs, especially as Spirit is in the process of being acquired by Boeing (NYSE:BA), Airbus’s main competitor.
Despite these concerns, the analyst highlighted the progress made in the ramp-up of the A320 program, a critical part of Airbus’s product line. The strong demand in the end market for this program continues unabated, supporting the optimistic outlook for the company.
Airbus’s current valuation also played a role in the firm’s reassessment. With the stock trading at a P/E ratio of 39.86 and maintaining a FAIR overall financial health score according to InvestingPro, Airbus presents an interesting investment case. The analyst pointed out that Airbus’s valuation represents a significant discount of approximately 50% compared to Boeing, indicating a potential upside for investors.
In summary, the revised price target of €189 reflects Vertical Research Partners’ belief in Airbus’s potential for growth and profitability, despite some operational risks. The continued strength of the A320 program and the overall robust demand in the aerospace sector contribute to the firm’s positive outlook on Airbus shares. InvestingPro analysis reveals 12 additional investment tips for Airbus, providing deeper insights into the company’s financial health and growth potential.
In other recent news, Airbus has been the focus of several significant developments. RBC Capital Markets has raised its price target for Airbus to €185, up from €160, while maintaining an Outperform rating. This adjustment follows Airbus’ strong fourth-quarter deliveries, which exceeded expectations and led to revised delivery projections for 2025. Meanwhile, Bernstein analysts reiterated their Outperform rating with a price target of €180, highlighting the importance of delivery guidance and margin outlook for 2025. Airbus has faced supply chain challenges, but positive updates from suppliers like GE and Safran (EPA:SAF) offer some optimism. Additionally, Airbus is in discussions with Riyadh Air for a potential order of up to 50 widebody aircraft, as the Saudi Arabian airline seeks to expand its fleet. Airbus CEO Guillaume Faury noted that the company ended 2024 in a better position than expected, despite narrowly missing its delivery target. However, Faury also warned of rising international business risks that could impact operations in 2025. Airbus is also exploring potential alliances in the satellite industry with Leonardo and Thales (EPA:TCFP), aiming to strengthen Europe’s position in this competitive sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.