Airbus: Berenberg still a seller
(CercleFinance.com) - Berenberg on Monday renewed its 'sell' recommendation on and E115 target price for Airbus shares, saying that it remained more cautious about the stock following the publication of press reports deemed worrying.
This speculation, it says, refers to the circulation of an internal memo designed to implement a new cost-cutting program within the strategic commercial aircraft division.
In view of the already weak Q1, the June profit warning and now a document envisaging new cost-cutting measures in the crucial civil aircraft division, we fail to see how the share price can be sustained at its current levels over the next few days in the run-up to Q2 results (30 July), or over the next 12 months, Berenberg says.
While the stock is currently trading above its historical averages following the recent upward revision of consensus forecasts over the past few years, the analyst recommends that investors take profit at current prices.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
This speculation, it says, refers to the circulation of an internal memo designed to implement a new cost-cutting program within the strategic commercial aircraft division.
In view of the already weak Q1, the June profit warning and now a document envisaging new cost-cutting measures in the crucial civil aircraft division, we fail to see how the share price can be sustained at its current levels over the next few days in the run-up to Q2 results (30 July), or over the next 12 months, Berenberg says.
While the stock is currently trading above its historical averages following the recent upward revision of consensus forecasts over the past few years, the analyst recommends that investors take profit at current prices.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.