Airbus: Oddo provides earnings estimates

(CercleFinance.com) - Oddo expects Q1 2021 adjusted EBIT of 594 million euros, over double the 281 million euros in Q1 2020 on sales of 10,264 million euros, meaning a margin of 5.
8%.

The fact that adjusted EBIT more than doubled relative to Q1 2020 is thanks to both structural efforts and favourable phasing. For Airbus Commercial, analysts model an adjusted EBIT of 503 million euros (vs. 191 million euros in Q1 2020).

They model adjusted EBIT of 2,935 million euros at group level, on 595 deliveries. The EPS upgrade is significant relative to FY21 (+17.9%), although weaker thereafter (+0.8% in FY22 and +0.7% in FY23), Oddo adds.

The analyst confirms his Outperform rating on the stock, along with a target price of 120 euros, saying that the rapid recovery in intra-zone capacity makes an acceleration of A320 production rates credible.

Oddo believes that beyond 2024 the stock still benefits from many levers, such as achieving a contribution margin similar to the A319 for the A220 and the rebound of the A350 program.


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