Airbus: analysts raise their price targets
The analyst - who maintains his 'overweight' recommendation on the stock - acknowledges that fiscal 2025 is not likely to see a spectacular upturn in business, but says he expects some encouraging signs that could boost market confidence in the aircraft manufacturer's medium-term objectives.
While supply problems persist, we are seeing the first signs of improvement, which could lead to better operational execution", explains the consultancy.
In its view, these factors could boost investor confidence in the Group's medium-term delivery figures and lead to an increase in the share price.
On the other hand, Morgan Stanley believes that it is still too early to consider launching a new share buyback program this year.
For its part, Bank of America announced that it had raised its price target for Airbus from 180 to 187 euros, while renewing its buy recommendation on the stock, which it has decided to include among its 25 best investment ideas for 2025.
In a research note, the US investment bank said it shared the view of the aircraft manufacturer's management that aircraft deliveries could return to pre-Covid levels 'in the near future'.
BofA adds that investors' attention will increasingly be drawn to the positive effect of the euro's decline against the dollar, a dynamic that will benefit the Group's business.
Lastly, while it does not expect to implement a multi-year share buyback program, the New York-based firm believes that Airbus' cash position of over 11.5 billion euros at the end of 2024 should allow for the acquisition of new shares.
Barclays also raised its price target on Airbus from 166 to 200 euros, while maintaining its 'overweight' recommendation on the stock.
In a research note, the analyst points out that the aircraft manufacturer has delivered more aircraft than expected in 2024, with 766 civil aircraft invoiced, compared with 735 in 2023.
In its view, the Group's outlook for deliveries is set to remain the main driver of its share price.
For 2025, Barclays expects 832 aircraft deliveries, followed by 915 aircraft in 2026 and 1,005 in 2027, which should enable the company to increase its operating profit (Ebit) by more than 40% over the 2025-2027 period.
Airbus will unveil its delivery targets for the new 2025 financial year when it publishes its annual results, scheduled for February 20.
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