Airbus SE (OTC:EADSY) (FR:AIR) declined in trading after the company slashed its FY24 forecast. The aerospace major stated that it is now targeting deliveries of 770 aircraft compared to its prior outlook of 800 deliveries.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
This adjustment is due to persistent supply chain challenges related to engines, aerostructures, and cabin equipment. However, Airbus is ramping up towards deliveries of 75 aircraft from the A320 family every month, which is now expected in 2027.
Airbus’s Lowered FY24 Outlook
Furthermore, Airbus now expects adjusted Earnings Before Interest and Taxes (EBIT) of around €5.5 billion, down from its previous estimate of €6.5 to €7 billion, and free cash flow before customer financing of around €3.5 billion.
Additionally, the company stated that in the first half of this year, it will record €0.9 billion in charges as its Space Systems management team conducted a technical review and identified additional commercial and technical challenges.
Is Airbus a Good Stock to Buy Right Now?
Only two analysts have covered EADSY stock over the past three months with one Hold and Sell each. Over the past year, EADSY stock has gone up by more than 8% and the average EADSY price target of $41.30 implies an upside potential of 11.2% from current levels.
