Analysts have raised their price target for Airbus to €200.26, supported by strong aircraft replacement demand, a durable order backlog, improved supply chain management, and a positive long-term outlook for air travel and deliveries.
Analyst Commentary
- Bullish analysts cite pent-up aircraft replacement demand providing revenue and earnings visibility through at least 2030.
- Upgrades and target price increases reflect optimism on the durability of Airbus's commercial aircraft order book.
- Analysts anticipate continued outperformance driven by structural demand and robust backlog.
- Rising confidence in Airbus's ability to manage supply chain challenges supports increased valuations.
- Improved long-term outlook for air travel demand and aircraft deliveries underpins higher price targets.
What's in the News
- Airbus, Thales, and Leonardo may sign an initial agreement this year to combine their satellite businesses, according to Reuters (Reuters).
- Incidents of toxic fumes leaking into airplanes have increased, with Airbus A320 jets a significant contributor; such events have caused emergency landings and health issues among passengers and crew, as reported by The Wall Street Journal (WSJ).
- Both Airbus and Boeing acknowledge that malfunctions can cause hazardous chemicals to enter aircraft cabins, potentially leading to severe health effects (WSJ).
- Delays by Airbus and Boeing in delivering jets are expected to create a capacity crunch in the air cargo market as older fleets retire and supply chain issues persist, per Financial Times (FT).
- Airbus must deliver aircraft at a record pace to meet its 2025 goal of 820 deliveries, aiming for a 7% increase despite equipment and engine delays (Reuters).
Valuation Changes
Summary of Valuation Changes for Airbus
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from €197.11 to €200.26.
- The Future P/E for Airbus remained effectively unchanged, moving only marginally from 23.76x to 24.05x.
- The Consensus Revenue Growth forecasts for Airbus remained effectively unchanged, moving only marginally from 12.1% per annum to 12.2% per annum.
Disclaimer
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