Airbus stock retains buy rating with Stifel despite EBIT guidance cut By Investing.com

On Tuesday, Stifel maintained a Buy rating on Airbus SE (AIR:FP) (OTC: OTC:), with a steady price target of EUR165.00, despite the aerospace giant’s recent announcement of a downward revision in its FY24 EBIT guidance. The adjustment from the initial forecast of EUR 6.5-7.0 billion to EUR 5.5 billion was attributed to a EUR 900 million provision for problematic projects in the Space division and persisting supply chain challenges.

Airbus also revised its FY24 aircraft delivery target, reducing the number from 800 to 770 planes. Additionally, the company has pushed back its production rate target of 75 planes per month, now expected to be achieved by 2027 instead of the previous goal of 2026.

The delay is partly due to engine manufacturers’ inability to deliver enough engines, which has implications for related suppliers such as MTU Aero Engines (OTC:) (MTXGY, Buy, EUR 228.80) and Safran (EPA: FP, Hold, EUR 206).

During the conference call, Airbus cited these engine delivery issues as a primary factor for the revised targets. The company’s challenges with engine suppliers suggest potential negative impacts on these partners, signaling a broader concern within the aerospace supply chain.

While the revised EBIT guidance and delivery targets indicate near-term hurdles for Airbus, Stifel’s reiteration of the Buy rating suggests confidence in the company’s long-term prospects. The price target of EUR 165.00 remains unchanged, reflecting Stifel’s ongoing positive outlook on Airbus’s stock performance.

InvestingPro Insights

In light of Airbus SE’s (AIR:FP) (OTC: EADSY) recent adjustments to its FY24 EBIT guidance and aircraft delivery targets, insights from InvestingPro provide a deeper understanding of the company’s financial health and market position. According to real-time data from InvestingPro, Airbus holds a market capitalization of approximately $2.5 billion USD, which underscores its significant presence in the aerospace industry. Despite the challenges, Airbus continues to be profitable with a reported revenue growth of 15.81% over the last twelve months as of Q3 2024, a testament to the company’s ability to expand its business amidst adversity.

InvestingPro Tips highlight that Airbus has been successful in raising its dividend for 3 consecutive years, indicating a commitment to delivering shareholder value. Furthermore, the company’s stock generally trades with low price volatility, providing a degree of stability to investors. This could be particularly appealing to shareholders in the context of the current supply chain challenges and revised production targets.

For investors seeking additional insights, there are more InvestingPro Tips available for Airbus, which could aid in making informed decisions about the stock. These tips can be found at https://www.investing.com/pro/AIR. Additionally, users can take advantage of a special offer to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24. With more tips at their disposal, investors can gain a comprehensive view of Airbus’s financial metrics and industry standing.

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