Airbus (OTC: EADSY) is getting a lift from two stock analyst names this morning, as first Barclays lowered its price target on the stock to 185 euros (but maintains an “overweight” rating on the stock, according to StreetInsider.com), while Paris shop Kepler Cheuvreux upgraded the European aerospace giant to “buy” with a 170-euro price target.
Airbus shares are responding with a move 2.8% higher through 10:45 a.m. ET.
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Airbus stock is down about 8% over the past month as investors punish the stock for “higher macroeconomic risk” on recession concerns, as The Fly points out today. The stock has already bounced off its lows, however, gaining about 10% over the past three weeks. Kepler, however, believes there are even more gains to be found here and agrees with Barclays that Airbus stock is a buy.
Are these analysts right about Airbus? Well, it’s worth pointing out that rival Boeing (NYSE: BA) just got an upgrade to “outperform” this morning from Bernstein SocGen (part of AllianceBernstein), which sees Boeing’s fortunes reviving as it works through problems with its 737 MAX airplane program and begins ramping production up to perhaps 38 planes per month by July, and 42 by the end of this year.
And not meaning to knock Boeing, but when you compare the two stocks side by side, Airbus really does look like the stronger operation right now. Airbus earned $4.4 billion in profit last year, versus Boeing’s $11.5 billion loss. Airbus is forecast to grow its earnings to $5.8 billion this year, whereas Boeing will be lucky to earn anything at all. And while Boeing should be on firmer footing by 2026, when it’s expected to earn $4 billion, Airbus profits in 2026 could be nearly twice as big — $7.3 billion!
Listen, at 26 times earnings, even I won’t try to make the case that Airbus stock is a bargain. But relative to Boeing, it’s clearly the stronger performer. So if Boeing deserves an upgrade, then… why not Airbus?
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