Airbus: Oddo still a buyer, trimming target price

(CercleFinance.com) - Broker Oddo says that the degree of caution incorporated in Airbus' 2021 guidance is surprising.


It believes that this reflects the recent deterioration in traffic and the uncertainty surrounding the timing of when this will pick up again, although it does not in any way call into question the trajectory of an acceleration beyond 2021.

While it sees 2021 as a year of transition, Airbus appears more optimistic beyond that, Oddo reports, expecting a grater increase in rate of increase above 2018-2019 and a return to the 2019 profitability level by 2023-2024.

The broker says that it is postponing its expectation of an increase in production rates by about two quarters, which results in a 9.8% reduction in adjusted EBIT in 2021, followed by 8.1% in 2022 and 6.6% in 2023.

Oddo therefore maintains its outperform rating on the Airbus share, while trimming its corresponding target price to 111 euros, vs. 114 euros previously.


Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.