Airbus: UBS a buyer, welcoming cash generation
(CercleFinance.com) - UBS has confirmed its buy rating on the Airbus Group share, which is soaring 10% this morning in Paris after the publication of its 2017 accounts.
Hailing quality results, analysts also confirm their 12-month target of 102 euros.
The European aircraft manufacturer this morning reported accounts that exceeded expectations at a number of key levels, UBS says - particularly regarding adjusted EBITA, which came in 8% above the consensus, thanks to the main Airbus Commercial division (civilian aircraft). However, this is particularly true for the generation of free cash flow: at 2.95 billion euros in adjusted terms, the aggregate has smashed the consensus, which was expecting just 1.31 billion euros.
Explanatory details include: "improved supplier payment terms and a positive contribution from suppliers," the broker says.
In 2018, management is aiming for a modest increase in adjusted operating income of around 3%, as well as stable cash flow, suggesting that the strong performance of 2017 can be renewed, analysts underline. This factor is all the more appreciated by the market as it was expecting a figure of just 2.30 billion euros.
Copyright (c) 2018 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.
Hailing quality results, analysts also confirm their 12-month target of 102 euros.
The European aircraft manufacturer this morning reported accounts that exceeded expectations at a number of key levels, UBS says - particularly regarding adjusted EBITA, which came in 8% above the consensus, thanks to the main Airbus Commercial division (civilian aircraft). However, this is particularly true for the generation of free cash flow: at 2.95 billion euros in adjusted terms, the aggregate has smashed the consensus, which was expecting just 1.31 billion euros.
Explanatory details include: "improved supplier payment terms and a positive contribution from suppliers," the broker says.
In 2018, management is aiming for a modest increase in adjusted operating income of around 3%, as well as stable cash flow, suggesting that the strong performance of 2017 can be renewed, analysts underline. This factor is all the more appreciated by the market as it was expecting a figure of just 2.30 billion euros.
Copyright (c) 2018 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.