AIRBUS : Berenberg downgrades recommendation to 'hold
January 16, 2023 at 10:24 am
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Berenberg announced on Monday that it had lowered its recommendation on Airbus from 'buy' to 'hold', with a price target reduced from €150 to €120.
While appreciating the aircraft manufacturer's competitive positioning and long-term prospects, the research firm deplored the unanimity surrounding the dossier, with 22 buy advisors out of 26 analysts following the stock.
Berenberg also adds that the impact of the persistent rise in inflationary pressures could also put the Group's profit margins under pressure this year.
The professional also points to limited elements of support in the immediate term, with the management team having notably ruled out the launch of share buybacks until net cash has risen back above the 10 billion euro mark, a hypothesis currently envisaged for the end of 2023.
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Airbus SE is No. 1 in Europe and No. 2 worldwide in the aeronautics, aerospace, and defense industries. Net sales break down by family of products and services as follows:
- commercial aircraft (71.8%). The group is No. 1 worldwide for aircrafts with more than 100 seats;
- defense and aerospace systems (17.4%): military aircrafts (primarily transport aircrafts, marine surveillance aircrafts, anti-submarines fighter planes and flight refueling aircrafts), spatial equipment (orbital launchers, observation and communication satellite, turboprop aircraft, etc.), defense and security systems (missile systems, electronic and telecommunications systems, etc.). Airbus SE also provides training and aircrafts maintenance services;
- civil and military helicopters (10.8%).
Net sales are distributed geographically as follows: Europe (39.3%), Asia/Pacific (28.6%), North America (21.1%), Middle East (6%), Latin America (2.7%) and other (2.3% ).
AIRBUS SE 
