Airbus (EADSF) Upgrades Avalanche Justified Given Boeing’s Deepening Woes, but Possible Trump’s Presidency Would be a Game Changer

RBC Capital Markets upgraded Airbus to “outperform” from “sector perform” and raised its target price to €192 euros from €145. The upgrade is driven by positive inventory growth and production momentum, with Airbus set to deliver 735 aircraft in 2023, beating expectations. The company's strong delivery results, outperformance of rival Boeing (BA) and an optimistic outlook for 2024 have all contributed to the appreciation. Airbus has delivered 79 aircraft this year, 65 of which are from the A320 family.

RBC Capital Markets upgraded Airbus Group (EADSF) to outperform from sector perform, with a price target of €192 from €145. The appreciation was mainly due to positive inventory growth and production dynamics. Airbus beat expectations with 735 aircraft deliveries in 2023 and expects to deliver 79 aircraft this year, including 65 A320 family aircraft. The upgrade was aided by the company's strong delivery performance, execution challenges at rival Boeing Co. and the recently reiterated positive outlook for 2024.

Given Boeing's non-stop self-defamation, the recommendation is more than justified. But. In about 8 months, a possible Trump's return to the White House would mark hard times for Airbus.