Airbus: Oddo raises target price
(CercleFinance.com) - Oddo maintains its Neutral rating on the Airbus stock, althouth has raised its target price from 83 euros to 88 euros.
The broker says that this increase is mainly to integrate the recovery of A320 production rates, which largely offsets the fall in that of the A330 in 2019, as well as for valuation reasons (E/$ spot rate of 1.20)
Analysts remain convinced of the strength of Airbus' positioning on the market, although prefers to wait for the appointment of the group's new CEO, who will have to decide on crucial issues, such as capital allocation, with the possibility/timing of a return of cash to shareholders, or even the possibility of launching a new commercial aircraft in response to the B797. Given these uncertainties, Oddo still finds it difficult to expect attractive multiples beyond 2020, as mentioned in its daily equity report.
Note that Q1 2018 figures were broadly in line with expectations.
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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.
The broker says that this increase is mainly to integrate the recovery of A320 production rates, which largely offsets the fall in that of the A330 in 2019, as well as for valuation reasons (E/$ spot rate of 1.20)
Analysts remain convinced of the strength of Airbus' positioning on the market, although prefers to wait for the appointment of the group's new CEO, who will have to decide on crucial issues, such as capital allocation, with the possibility/timing of a return of cash to shareholders, or even the possibility of launching a new commercial aircraft in response to the B797. Given these uncertainties, Oddo still finds it difficult to expect attractive multiples beyond 2020, as mentioned in its daily equity report.
Note that Q1 2018 figures were broadly in line with expectations.
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.