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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.

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