Airbus shares fall due to delivery delays
2022.12.07 05:50
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Airbus shares fall due to delivery delays
Budrigannews.com – Airbus SE shares (EPA:) fell on Wednesday after the aircraft manufacturer pushed back a planned date for achieving a crucial production target and cut its full-year guidance for aircraft deliveries.
The largest jet manufacturer in the world said in a statement on Tuesday that the previous goal of “around 700” deliveries in 2022 is now “out of reach.” It also stated that the final number would no longer be anticipated to be “materially short” of “around 700,” but it did not specify a specific sum.
The decision, according to Airbus, was based on its 68 November deliveries. Reuters reports that suppliers had set an 80-day industrial planning goal for the month.
After accounting for the cancellation of two planes as a result of international sanctions imposed on Russia following the outbreak of the war in Ukraine earlier this year, the number of deliveries for the year ending in November was 563.
A “complex operating environment” was also mentioned as a red flag by the European aerospace giant. Analysts have noted that Boeing Co (NYSE:), a major competitor of Airbus, have experienced delays throughout 2022 due to disruptions in the supply chain.
Airbus has extended the deadline for achieving its interim production target of 65 A320 family aircraft to 2023-2024. The organization had meant to arrive at 65 by mid 2024 in the wake of moving back its booked objective of mid-2023 prior this year due to supply issues.
Be that as it may, Airbus kept up with its direction for both changed income before premium and expenses and free income.
Deutsche Bank analysts cited Airbus’ “conservative” financial outlook as a reason for lowering their price target for the stock from €133 to €130 per share. The price target set by Jefferies analysts was also lowered to €132 per share.
In the meantime, Citi analysts maintained Airbus’ €171 target and “Buy” rating, stating that the updated delivery schedule is a “minor delay” that has little effect on the company’s value.
