Airbus: Credit Suisse upgrades to 'outperform'
(CercleFinance.com) - This morning Credit Suisse has upgraded its previously "neutral" rating on the share of the European aircraft manufacturer Airbus Group to buy ("outperform"), while raising its target price from 110 euros to 120 euros.
This means upside potential of around 25%.
According to analysts, the share's recent volatility "creates an opportunity to buy into Airbus". Indeed, we now know that Guillaume Faury will succeed Tom Enders at the group's helm next April, which automatically reduces uncertainties.
But what about the allocation of capital? Good news cannot be ruled out. Credit Suisse calculates that the Airbus' new management could increase investments - for example to further automate the A320 assembly lines. However, even in this case, over ten billion euros would remain available for returns to shareholders between 2019 and 2022, "on top of the current dividend levels".
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.
This means upside potential of around 25%.
According to analysts, the share's recent volatility "creates an opportunity to buy into Airbus". Indeed, we now know that Guillaume Faury will succeed Tom Enders at the group's helm next April, which automatically reduces uncertainties.
But what about the allocation of capital? Good news cannot be ruled out. Credit Suisse calculates that the Airbus' new management could increase investments - for example to further automate the A320 assembly lines. However, even in this case, over ten billion euros would remain available for returns to shareholders between 2019 and 2022, "on top of the current dividend levels".
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.