Airbus: Credit Suisse a buyer; maintains target price

(CercleFinance.com) - In a report published this morning, Credit Suisse maintains its buy ("outperform") rating on the Airbus share, believing that the European aircraft manufacturer is on track to reach its delivery target in 2018.

The broker also confirms its target price of 120 euros.

According to its research report, Airbus should be able to reach 780 deliveries of civilian aircraft this year (excluding the A220), which suggests that it will release 119 from factories in December, figures that are considered "consistent" with those of the same month in 2016 (111) and 2017 (127). In December 2018 analysts are betting on the delivery of 70 to 80 A320neo aircraft, whose production rates have accelerated since the summer now that the CFM and Pratt & Whitney engine manufacturers are managing to better meet their commitments.

However, Credit Suisse says that achieving this delivery target is, "a major pre-requisite for the 'guidance' of operating income and free cash flow".



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