Airbus: Credit Suisse updates estimates
(CercleFinance.com) - Credit Suisse reiterates its outperform recommendation on the Airbus stock with a target price of 78 euros a roadshow with management.
"We consider that it offers better upside than many peers. The resulting rebound in profits and cash is not reflected in the stock price, in our opinion," analysts said.
"We find that the tone of the conversations has been consistent with the H1 presentation, i.e. cautiously optimistic in a very difficult environment. The situation appears to have stabilized and 2022e may be the year where the group's key programme (A320)".
"A key challenge will be the reduction of fixed costs on widebodies (A350 in particular), where management reaffirms their view that there will be no recovery before 2023-2025," Crédit Suisse adds.
"We update our estimates following the H1 results. We reduce net income over 2022e-2024e by -6%/-4%/-2%, while we slightly decrease the net loss in 2020e (less restructuring charges) and marginally increase 2021e profits (more Defence & Space)".
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