(News Bulletin 247) – Oddo BHF expects a solid second quarter of 2023 (publication on July 26) with Adjusted EBIT up 28% compared to the second quarter of 2022, mainly driven by Airbus Commercial.

‘ In this segment, we expect an Adjusted EBIT of 1,569 ME (+29.6%) for a turnover of 12.4 MdE, i.e. a margin of 12.7% (-80 bp or -72 bp excluding R&D and reversal of provision), by i/a strong volume effect with the delivery of 34 additional aircraft compared to Q2 2022, including 29 A320s; ii/ an improvement of 5 cents in USD coverage; iii/ an improvement in the profitability of the A350 program thanks to the delivery of 3 additional aircraft and iv/ better amortization of fixed costs’ indicates Oddo BHF.

The analyst expects an Adjusted FCF of 1,815 ME, higher than that of the 2nd quarter of 2022, after consumption of 889 ME in the 1st quarter.

‘We are incrementally more confident on our estimate of 735 deliveries in 2023 (perhaps with the exception of the A220) and on our forecast of 840 in 2024’ adds the analysis office.

Oddo BHF confirms its advice to Outperformance on the share and its target price of €145.

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