Airbus: Jefferies still a buyer, trims target price
(CercleFinance.com) - While maintaining its Buy rating on Airbus shares, in turn Jefferies has reduced its target price for them - this time to 140 euros (from 145 euros).
Jefferies is reitering 2022 delivery and medium-term production targets. While supply chain challenges remain the key issue for the analyst, shareholder returns and margin trends beyond 2023, which are expected to accelerate despite conservative inflation assumptions, confirm the shares' appeal.
The replacement of the A320neo around 2040 pushes back the increase in R&D and development risks, it notes, with Airbus still the broker's best sector pick, with a clear value profile, trading 10% below its 5-year (pre-Covid) average.
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