Shares
in
aircraft
manufacturer
Airbus
(AIR)
posted
the
biggest
fall
on
the
Paris
Bourse
after
the
company
issued
a
profit
warning
due
to
problems
with
its
supply
chains
and
asset
write-downs.
At
10:42
UK
time,
the
share
price
was
down
11.2%
at
€132.84
(£112.27).
In
a
press
release
issued
after
trading
on
Monday
24
June,
Airbus
indicated
it
would
only
be
able
to
deliver
770
aircraft
this
year
instead
of
the
800
previously
announced.
Production
rates
for
the
A320,
its
best-selling
aircraft,
will
not
reach
75
units
per
month
until
2027,
the
company
warned –
a
year
later
than
forecast.
The
group
also
indicated
that
it
had
set
aside
a
provision
of
€900
million
following
the
review
of
its
space
programmes,
a
charge
which
will
impact
the
accounts
for
the
first
half
of
2024,
due
on
30
July.
On
the
basis
of
these
factors,
Airbus
now
expects
adjusted
operating
income
of
€5.5
billion
in
2024
(compared
with
€6.5
billion
to
€7
billion
previously),
and
adjusted
free
cash
flow
before
customer
financing
of
around
€3.5
billion
(compared
with
€4
billion
previously).
Key
Morningstar
Metrics
For
Airbus
• Fair
Value
Estimate:
€163
• Price/Fair
Value:
0.91
• Morningstar
Rating: ★★★
• Morningstar
Uncertainty
Rating:
Medium
• Economic
Moat:
Wide
The
publication
is
a
disappointment
for
several
analysts.
Deutsche
Bank
has
lowered
its
opinion
on
the
share
from
“Buy”
to
“Hold”,
and
has
revised
its
target
price
from
€186
to
€155.
“Space
systems
continue
to
underperform,
after
an
already
difficult
2023,”
the
bank’s
analysts
wrote
in
a
note
published
on
Tuesday.
“The
situation
is
reminiscent
of
2022,
but
this
time
it’s
made
even
worse
by
Space.
The
dust
must
settle
before
we
can
become
positive
again.
“June
deliveries
are
apparently
sluggish
and
there
is
no
guarantee
at
this
stage
that
the
new
delivery
target
will
be
easy
to
meet
by
the
end
of
the
year.”
In
a
note
also
published
on
Tuesday,
Citi
analysts
revised
their
forecasts
downwards
by
12%-19%
for
the
period
2024-2027,
but
believe
that
the
fall
in
the
share
price
represents
a
buying
opportunity.
“We
believe
that
the
order
book
of
8,500
aircraft
supports
the
valuation
and
that
the
current
weakness
represents
a
buying
opportunity,”
they
wrote.
RBC
Bank
shares
a
similar
view.
In
a
note
dated
24
June,
its
analysts
said:
“We
believe
that
many
of
the
headwinds
in
the
space
and
commercial
businesses
are
reflected
in
the
share
price,
and
we
maintain
our
‘outperform’
view
with
a
price
target
of
€180.”
Morningstar
analyst
Nic
Owens
maintains
his
fair
value
estimate
of
€163
per
share
in
a
note
dated
25
June.
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