Airbus: Credit Suisse cuts target price

(CercleFinance.com) - Credit Suisse confirms its buy rating on the Airbus share, although has cut its target price to 78 euros (vs.
82 euros).

The broker announces significant revisions to its 2020 and 2021 FCF estimates, although only modest changes to those for 2022-2024.

Analysts expect an outflow of -10.1 billion euros in 2020e (compared with an inflow of +907 million euros previously). "This results from increased level of inventories and undelivered aircraft by end-2020e and lower airlines payments," the analysts said.

"We also reduce our adjusted EBIT expectations for 2020e by EUR2.4bn... 2022e-2024e prospects are much less impacted, with EBIT reductions of -4%/-5% driven by slightly lower A350 production rates," Credit Suisse adds.


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