Airbus: Oddo cuts target price

(CercleFinance.com) - Airbus has announced the adjustment of its production rate, reducing this by approximately 1/3 compared to the rate in force before the Covid-19 crisis.


As such, its monthly production rate now reaches 40 A320s (compared to slightly above 60), 2 A330s (against 3.5) and 6 A350s (against 9 to 10).

Oddo expects the group to deliver 627 aircraft in 2020
(-20% compared to previous estimates), against 863 in 2019 before a slight improvement to 676 in 2021 (-18%) driven by the A320neo family.

Following these adjustments, the broker has cut its 2020 EPS estimates by 38% compared to 2019, with a slight improvement of 3% in 2021. Over the next 3 years, it has cut its EPS estimates by an average by 35% compared to its previous estimates, it adds.

Oddo confirms its buy rating on the share, although has cut its corresponding target price to 78 euros (against 90 euros).


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