Airbus: UBS cuts target price
(CercleFinance.com) - UBS said on Monday that it has reduced its target price for the Airbus share, along with its earnings estimates, due to the impact of the Covid-19 crisis on the airline sector.
It does however, maintain a buy recommendation on the share.
In comments released in the morning, the broker says that it has revised reduced its forecast for Airbus' aircraft deliveries and cash amid falling global air traffic.
Noting the impact of the coronavirus on airlines, UBS says it has lowered its production forecasts for Airbus by 5% to 7% - as it is for Boeing - for the period 2020-2022, which has led it to cut its target price for the Airbus share from 153 euros to 140 euros.
However, analysts say that the share's recent fall is excessive.
At 10:30 a.m., the Airbus share was down 7.4%, underperforming the CAC 40 (-5.7%). The share price has fallen by 35% over the past month.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
It does however, maintain a buy recommendation on the share.
In comments released in the morning, the broker says that it has revised reduced its forecast for Airbus' aircraft deliveries and cash amid falling global air traffic.
Noting the impact of the coronavirus on airlines, UBS says it has lowered its production forecasts for Airbus by 5% to 7% - as it is for Boeing - for the period 2020-2022, which has led it to cut its target price for the Airbus share from 153 euros to 140 euros.
However, analysts say that the share's recent fall is excessive.
At 10:30 a.m., the Airbus share was down 7.4%, underperforming the CAC 40 (-5.7%). The share price has fallen by 35% over the past month.
Copyright (c) 2020 CercleFinance.com. All rights reserved.