Airbus: stock on the up, with a broker upgrade
(CercleFinance.com) - The Airbus stock is up 1.
5% in Paris, following favourable comments from the broker Jefferies, which has upgraded its rating on the aircraft manufacturer's stock from "hold" to "buy," raising its target price from 75 euros to 110 euros.
The broker believes that its current valuation does not take into account the future growth in 2021 and 2022 or Airbus' redistribution to shareholders of a large share of its net cash of 19 billion euros expected at the end of 2020.
However, Jefferies warns that a serious trade dispute between the US and China could hit the economy to such a level that the growth in air traffic would slow to the point that aircraft deliveries could be at risk of falling.
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.
5% in Paris, following favourable comments from the broker Jefferies, which has upgraded its rating on the aircraft manufacturer's stock from "hold" to "buy," raising its target price from 75 euros to 110 euros.
The broker believes that its current valuation does not take into account the future growth in 2021 and 2022 or Airbus' redistribution to shareholders of a large share of its net cash of 19 billion euros expected at the end of 2020.
However, Jefferies warns that a serious trade dispute between the US and China could hit the economy to such a level that the growth in air traffic would slow to the point that aircraft deliveries could be at risk of falling.
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.