tiprankstipranks
Airbus (OTC:EADSY) Declines After Slashing FY24 Forecast
Market News

Airbus (OTC:EADSY) Declines After Slashing FY24 Forecast

Story Highlights

Airbus declined in trading after slashing its FY24 outlook.

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.

Don't Miss our Black Friday Offers:

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.

Related Articles
TheFlySpirit AeroSystems announces restated Memorandum of Agreement with Airbus
TheFlyAirbus price target raised to EUR 184 from EUR 182 at Citi
TheFlyAirbus price target raised to EUR 165 from EUR 161 at Barclays
Go Ad-Free with Our App