Airbus: Oddo upgrades in sector report
(CercleFinance.com) - Oddo believes that air transport and civil aviation are being hit head on by the COVID-19 crisis.
Analysts say, however, that prices currently offer unprecedented opportunities for solid players.
The broker says that in 2020, it expects an unprecedented slump in global traffic amounting to 23%, including 25% in Europe alone. It integrates a partial recovery in 2021, with around a 15% upturn in traffic for the industry and Europe.
Thus, analysts' best picks include IAG (Buy - TP 3.5 euros, vs. 8.2 euros) and Ryanair (Buy - TP 12 euros vs. 19 euros), as they believe that these airlines are the best positioned, given their level of liquidity and low indebtedness and that they will emerge strengthened from this crisis. Oddo has upgraded its rating on the Airbus share to Buy (TP of 90 euros, vs. 125 euros), it adds.
Finally, the broker downgrades MTU to Neutral (TP 170 euros, vs. 245 euros), along with Rolls-Royce (TP 460p vs. 1,090p), while it slashes its TP for the Safran share (85 euros vs. 146 euros). Oddo remains a buyer of the Dassault Aviation, Thales and Leonardo shares (despite exposure to Italy).
Copyright (c) 2020 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.
Analysts say, however, that prices currently offer unprecedented opportunities for solid players.
The broker says that in 2020, it expects an unprecedented slump in global traffic amounting to 23%, including 25% in Europe alone. It integrates a partial recovery in 2021, with around a 15% upturn in traffic for the industry and Europe.
Thus, analysts' best picks include IAG (Buy - TP 3.5 euros, vs. 8.2 euros) and Ryanair (Buy - TP 12 euros vs. 19 euros), as they believe that these airlines are the best positioned, given their level of liquidity and low indebtedness and that they will emerge strengthened from this crisis. Oddo has upgraded its rating on the Airbus share to Buy (TP of 90 euros, vs. 125 euros), it adds.
Finally, the broker downgrades MTU to Neutral (TP 170 euros, vs. 245 euros), along with Rolls-Royce (TP 460p vs. 1,090p), while it slashes its TP for the Safran share (85 euros vs. 146 euros). Oddo remains a buyer of the Dassault Aviation, Thales and Leonardo shares (despite exposure to Italy).
Copyright (c) 2020 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.