Oddo BHF has reiterated its "outperform" rating and maintained its price target of EUR236 on Airbus, even as the margin for meeting the 2025 delivery goal of 820 aircraft has narrowed following recent quality issues with a batch of fuselage panels.
The research firm believes that Monday's 5.8% drop in the aerospace manufacturer's stock is "exaggerated for a company set to benefit from the gradual improvement in the supply chain and the work undertaken to enhance the agility of its industrial operations."
Oddo BHF continues to forecast a robust growth profile for Airbus, projecting a compound annual growth rate (CAGR) of 24% for earnings per share from 2024 to 2028, and a cumulative free cash flow of EUR28 billion. According to the firm, a significant portion of this cash flow is expected to be returned to shareholders, "all at a particularly attractive valuation."
