Airbus: Barclays cuts target price
(CercleFinance.com) - Barclays reinstates its "overweight" recommendation on the Airbus share, although has cut its target price from 155 euros to 147 euros, in the wake of around a 10% cut in its 2020-21 EPS estimates for the aircraft manufacturer.
"Although we still expect the cash flow profile at Airbus to become more predictable and robust compared with that of Boeing," Barclays now believes that, "we now think the J curve on A320s production will see the FCF growth story improvement postponed".
"Though not hugely material to Airbus' earnings, this nonetheless will flow out in cash over the coming two years or so, impacting the pace of FCF conversion," the broker adds.
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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.
"Although we still expect the cash flow profile at Airbus to become more predictable and robust compared with that of Boeing," Barclays now believes that, "we now think the J curve on A320s production will see the FCF growth story improvement postponed".
"Though not hugely material to Airbus' earnings, this nonetheless will flow out in cash over the coming two years or so, impacting the pace of FCF conversion," the broker adds.
Copyright (c) 2019 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.