Jason Sum, an analyst from DBS, maintained the Buy rating on Airbus Group SE (EADSF – Research Report). The associated price target remains the same with €200.00.
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Jason Sum’s rating is based on several compelling factors. Airbus Group SE is positioned to capitalize on the recent geopolitical tensions that have led China to halt Boeing deliveries, potentially increasing Airbus’s market share among Chinese airlines. The company is a dominant player in the aerospace sector, benefiting from significant barriers to entry and a strong product lineup, including the fuel-efficient A320 family. Airbus’s commitment to innovation, such as the development of a zero-emission commercial aircraft by 2035, further enhances its competitive advantage.
Despite facing short-term challenges like supply chain disruptions and costs related to its space program, Airbus’s medium-term outlook remains positive. The company is expected to see substantial growth in adjusted EBIT by FY25, driven by increased aircraft deliveries and improved operational efficiencies. Additionally, Airbus’s strong financial position, characterized by a significant net cash reserve and robust free cash flow, provides flexibility for strategic acquisitions and shareholder returns. These factors contribute to a Buy rating with a target price of EUR 200, reflecting confidence in Airbus’s long-term potential.
Sum covers the Industrials sector, focusing on stocks such as ST Engineering, COSCO SHIPPING Holdings Co, and Boeing. According to TipRanks, Sum has an average return of 7.4% and a 56.86% success rate on recommended stocks.
In another report released on May 2, Jefferies also upgraded the stock to a Buy with a €175.00 price target.