Analysts have raised their price target for Airbus from €200.26 to €203.25, citing improved visibility into future demand and a steady profitability outlook.
Analyst Commentary
Bullish analysts have recently become more optimistic toward Airbus, citing several factors supporting the company’s positive outlook and valuation.
Bullish Takeaways
- Rising visibility into long-term demand, particularly from pent up replacement cycles, supports continued revenue growth and operational planning through at least 2030.
- Upgrades in price targets reflect increased confidence in the company’s ability to deliver on backlog and capture market share as air travel normalizes.
- Steady profitability is expected due to Airbus’s focus on operational execution and a robust order pipeline.
- Analysts anticipate margin improvements as production scales and supply chain challenges are gradually resolved.
Bearish Takeaways
- Some caution remains regarding near-term execution risks given the complexity of delivering existing aircraft orders on schedule.
- Supply chain headwinds and labor shortages could create unpredictability in output and margin performance.
- There are concerns about economic volatility in certain markets, which could impact airlines’ capacity to follow through with fleet upgrades.
What's in the News
- Boeing is developing a successor to the 737 MAX in an effort to regain market share lost to Airbus. The project is in the early stages, with plans and engine discussions underway (Wall Street Journal).
- Delta Air Lines is replacing power units on over 300 Airbus A320 jets to address incidents of toxic fumes in the air supply that are impacting passenger and crew safety (Wall Street Journal).
- Reports indicate that incidents involving toxic fumes leaking into the cabins of Airbus A320 family jets have increased. This has led to emergency landings and health concerns for passengers and crew (Wall Street Journal).
- Airbus, Thales, and Leonardo may finalize an agreement this year to combine their satellite businesses, which would expand collaborative opportunities in space technology (Reuters).
- Delivery delays from Airbus and Boeing are increasing the risk of an air cargo capacity crunch, as airlines warn of a supply-demand imbalance for wide-body freighters (Financial Times).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from €200.26 to €203.25, reflecting increased confidence in the company's outlook.
- Discount Rate has increased marginally from 6.20% to 6.21%, indicating a minimal shift in assessed risk profile.
- Revenue Growth forecast has edged down from 12.24% to 12.11%, suggesting slightly tempered long-term expansion expectations.
- Net Profit Margin is projected higher, moving from 7.99% to 8.01%, pointing to an improved efficiency and profitability outlook.
- Future P/E ratio has risen to 24.44x from 24.05x, indicating a modestly higher valuation multiple based on future earnings.
Disclaimer
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