Airbus: with potential good news, Mainfirst still a buyer
(CercleFinance.com) - Quoting the Financial Times, Mainfirst reports that yesterday evening, Airbus asked its suppliers to prepare for the production of 47 A320s from the second half of the year - compared to 40 previously - which represents an 18% increase and "represents a stronger demand signal than we had anticipated," the broker says.
Furthermore, the analyst believes that Boeing's difficulties with its 737 MAX and "the reputational damage to the program from the losses of two aircraft and subsequent investigations" could result in increased A320 deliveries in the near future. "By our calculations, over the last 12 months, there have been 466 MAX cancellations," Mainfirst said.
With the group's results due out next week, the broker maintains its buy rating on the stock, with a target price of 90 euros (current price: 68 euros, +6%).
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