Airbus: share price falls as Berenberg goes against consensus
January 16, 2023 at 04:44 am EST
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On Monday morning, Airbus shares posted one of the biggest declines in the CAC 40 index, as Berenberg analysts cut their recommendation on the stock from "buy" to "hold".
At around 10:30 a.m., the stock was down by just over 1%, compared with a stable performance at the same time for the CAC 40, although this did not prevent it from retaining a gain of over 20% over the last three months.
While appreciating the aircraft manufacturer's competitive positioning and long-term prospects, Berenberg deplores the unanimity surrounding the stock, with 22 buy advisories out of 26 analysts following the stock.
The research firm adds that the impact of the persistent rise in inflationary pressures could also put the Group's profit margins under pressure this year.
The research firm also points to limited immediate support, with the management team having ruled out the launch of share buybacks until net cash has risen back above the 10 billion euro mark, an assumption currently envisaged for the end of 2023.
Its price target has consequently been reduced from 150 to 120 euros.
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Airbus SE is No. 1 in Europe and No. 2 worldwide in the aeronautics, aerospace, and defense industries. Net sales break down by family of products and services as follows:
- commercial aircraft (71.8%). The group is No. 1 worldwide for aircrafts with more than 100 seats;
- defense and aerospace systems (17.4%): military aircrafts (primarily transport aircrafts, marine surveillance aircrafts, anti-submarines fighter planes and flight refueling aircrafts), spatial equipment (orbital launchers, observation and communication satellite, turboprop aircraft, etc.), defense and security systems (missile systems, electronic and telecommunications systems, etc.). Airbus SE also provides training and aircrafts maintenance services;
- civil and military helicopters (10.8%).
Net sales are distributed geographically as follows: Europe (39.3%), Asia/Pacific (28.6%), North America (21.1%), Middle East (6%), Latin America (2.7%) and other (2.3% ).
AIRBUS SE 
