(BFM Stock Exchange) – The Bank has screened all of its coverage in the aeronautical and defense sector, significantly noting its course objectives. Airbus is now its favorite value in the civilian, Jefferies deeming achievable its target of 75 aircraft of the A320 NEO family products each month by 2027.

At the end of the season of the results of the first semester, Jefferies found the time during this loaded period, to spend the laser all the groups of its coverage in the aeronautical-defense sector.

The bank took the opportunity to change its order preferably in civil aeronautics. Airbus (whose defense represents less than 20% of income) is thus the new favorite value of Jefferies, succeeding the German engine manufacturer MTU Aero. In the defense, Rheinmetall continues to be Jefferies’ favorite action.

To return to Airbus, the financial intermediary has significantly noted its course objective, while reiterating its advice to purchase. Jefferies enhanced his target over twelve months to 225 euros against 175 euros previously, which, at the end of Friday, grants a potential of 33% to Airbus action.

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A “turn” on the production of A320 Neo

“Airbus dominates the civil aeronautics sector thanks to a powerful combination between increased production, operational lever effect and favorable effects on its ‘mix’ mixed (orientation of sales to more profitable products, editor’s note)”, explains Jefferies.

“Although motor deliveries remain a factor of uncertainty for 2025 and the feeling of investors has already improved, we see a net potential increase thanks to a higher delivery potential from 2026”, continues the financial intermediary.

The bank believes that Airbus is at “a turning point” favorable. For years, the consensus (the average forecast of analysts) has lowered its forecasts of deliveries of A320 NEO, the family of monocoors best-seller of the group and its cash-machine. Now Jefferies considers that the production of this family is currently taking off and turning on a satisfactory diet.

The establishment considers that currently the company is on an unprecedented rate, from 62 planes to 64 planes per month. This puts Airbus on a good trajectory to reach its goal, namely a monthly rhythm of 75 planes per month in 2027.

However, according to Jefferies, the consensus tables for the moment on a prudent figure of 60 planes per month for 2026.

“With an improvement in the situation of the supply chain, we believe that the group should be able to increase its rates by at least 5 aircraft per month by the end of 2026, which would make the cadence of 75 aircraft achievable by 2027,” writes Jefferies.

The bank expects this volume effect to be accompanied by a “reabsorption” of the overeasy, which will also take care of its profitability.

Saffron could take up several objectives

Another carrier wind for Airbus, the rise of the production of its Grosur-Driveur A350. The company plans to reach a monthly production rate of 12 planes by 2028. Jefferies retains a rate of nine planes per month on average in 2028 and 12 by 2030, which could potentially add, according to its calculations, 1 billion euros in operating profit in 2028, a figure that would increase to 1.5 billion in 2030.

Regarding the “mix” effect, Jefferies estimates that the A321 XLR provides 5 million to 6 million additional income per plane compared to the rest of the A321 family. This, by integrating production costs, could provide 500 million euros in additional operating profit if Airbus holds its objective produced 10 aircraft A321XLR per month, calculates Jefferies.

Note that Jefferies also significantly noted its price for courses at twelve months on Safran, going to 350 euros against 290 euros, which grants a potential of almost 25% to action during Friday closing.

Fifth highest increase in CAC 40 since the start of the year (+35.55%), Safran benefited in 2025 from the dynamism of its post-sales activities (maintenance, repairs and sales of spare parts) and Jefferies expect this good dynamic to continue.

The financial intermediary also believes that the group could note its forecast of medium term of profits from the CFM 56, the best-selling engine in the world, co-developed with the American Ge Aero within their joint subsidiary CFM International.

Jefferies notes that during his recent day dedicated to investors, Ge Aero estimated that his profits recorded on the CFM 56 would be 20% further in 2028 than in 2024.

What decides, notes the bank, with the indications given by Safran during its own day dedicated to investors, at the end of 2024. According to Jefferies, the group anticipated a contraction of 15% to 20% over the same period.

The Bank believes that Safran could also do the same, that is to say, raise its forecasts, on the new generation engines of CFM International, the “Leap”, which equip the A320 NEO and the 737 Max. Even if in this case, cross-reading is less obvious, because Safran and Ge Aero count differently in their accounts the results generated by the post-sales activities on the Leap.

On the Paris Stock Exchange, the new Jefferies targets are partially followed by the market. Airbus wins 1.4% and saffron takes 2.4% while the CAC 40 advances at the same time by 1.05%