Airbus Shares Downgraded to Hold at Berenberg

Airbus (EPS: AIR) shares were downgraded to Hold from Buy at Berenberg on Monday, with its price target also cut to EUR120 from EUR150.

Berenberg analyst Andrew Gollan told investors in a research note that the “near-term complexities” facing the company are not fully captured in consensus estimates and the stock's valuation.

Airbus' Euronext Paris-listed shares closed Monday's session down more than 1%. However, while they opened Tuesday's session lower, they are currently flat on the day.

Elsewhere, on Wednesday last week, the company's price target was cut to EUR160 from EUR170 at JPMorgan, although analyst David Perry maintained an Overweight rating on the stock.

In addition, in December, Airbus was downgraded to Hold from Buy with a EUR114 price target by Kepler Cheuvreux analyst Aymeric Poulain, after the company said that based on its November deliveries of 68 commercial aircraft and the complex operating environment, it considered its target of “around 700” commercial aircraft deliveries in 2022 to be out of reach.

The company explained that it remained committed to delivering the financial guidance provided in its nine-month 2022 results, but taking into account that the complex environment will persist longer than previously expected, it said it will be adjusting the speed of the A320 Family ramp-up to rate 65 for 2023 and 2024. Last week, it reported that it delivered 661 commercial aircraft to 84 customers in 2022 and registered 1,078 gross new orders.

Airbus' full rear results are expected to be released on February 16, 2023.