Berenberg on Monday renewed its 'sell' recommendation and €115 price target on Airbus shares, saying it was still more cautious about the stock following the publication of press reports deemed worrying.
These speculations, it recalls, refer to the circulation of an internal memo designed to implement a new cost-cutting program within the strategic commercial aircraft division.
In view of the already weak first quarter, the June profit warning and now a document envisaging new cost-cutting measures in the crucial civil aircraft division, we fail to see how the share price can be sustained at its current levels over the next few days in the run-up to the second-quarter results (July 30), or over the next 12 months", says Berenberg.
While the stock is currently trading above its historical averages following the recent upward revision of consensus forecasts over the past few years, the analyst recommends that investors take profits at current prices.
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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 
