Airbus: Deutsche Bank downgrades stock

(CercleFinance.com) - Deutsche Bank announced on Tuesday that it had downgraded Airbus shares from "buy" to "hold", with a price target reduced from E186 to E155, following the "surprising" warning issued by the aircraft manufacturer last night.


The analyst - who refers to a rather damaging profit warning - says it has consequently lowered its operating profit (Ebit) and free cash flow (FCF) forecasts for the period 2024-2026 by 13% to 20%, due to the supply problems encountered by the group.

Deutsche Bank believes that aircraft deliveries for June will probably disappoint, meaning that the new target of 770 units for 2024, up from 800 hitherto, may even be difficult to achieve in its view.

The broker points out that this situation reminds it of the weaker-than-expected performance in FY 2022, although this time it is exacerbated by the current difficulties in the space division.

Against this backdrop, Deutsche Bank believes that it is necessary for "the dust to settle" before it can again become more favourable towards the stock.


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