(News Bulletin 247) – Berenberg renewed his ‘sell’ advice and his price target of 100 euros on Airbus on Thursday, judging that it was ‘too early to extrapolate’ the good delivery figures published for the month of May.
The aircraft manufacturer announced last night that it delivered 63 aircraft and recorded 17 gross orders last month, compared to 54 aircraft delivered and only four gross orders in April.
According to Berenberg, the aeronautical giant still has ‘work to do’ for the second half, since it has so far only delivered 244 aircraft on its target of 720 deliveries, which corresponds to a ratio of 34%, against an average of 38% for this period of the year.
‘While we like the company and the investment case it builds on a number of counts, we find it difficult to see any expansion in valuation multiples from their current levels and still believe the earnings consensus is 10% to 15% too high for the next 12 to 24 months,’ he concludes.
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