Airbus: Jefferies confirms its analysis on the stock

(CercleFinance.com) - Jefferies confirms its Buy rating on Airbus shares, with an unchanged target price of 190 euros, following a communication from the aircraft manufacturer last night.


The broker is confirmed in its analysis that Airbus should post 'good results for the fourth quarter of 2024, particularly in terms of free cash flow (FCF)'.

In the commercial sector, Airbus recalled that 22 more deliveries were recorded in Q4 than in the previous year, but that the seven fewer deliveries of the A350 had a mechanical impact with lower absorption of fixed costs.

In summary, we feel comfortable with our forecast of a €413 million year-on-year increase in EBIT, despite inflation and comments on the A350 being slightly less favorable than our estimates," says Jefferies in essence.

Note that the currency impact in the commercial sector is expected to be stable despite a 1 cent deterioration in the hedge ratio, while headcount is expected to remain stable compared with the third quarter, which we believe offsets comments about weaker absorption of A350 fixed costs, with 7 fewer deliveries year-on-year in the fourth quarter. Helicopter messages were also strong. Inventory reduction was highlighted as a positive factor for FCF, reinforcing our view that exceeding the fiscal 2024 FCF target of €3.5 billion is likely.

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