Airbus Group SE (FR:AIR) has reportedly experienced a surge in its deliveries in November, surpassing 80 jets. According to Reuters, Airbus achieved at least a 25% year-over-year growth in its November deliveries. This was a slight relief for investors after the company suffered supply challenges and difficulties in meeting targets, resulting in share price volatility. Airbus shares gained 1.16% as of writing.
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Year-to-date, Airbus shares in France have advanced 6.5% in trading.
Airbus Group is a leading European aircraft manufacturer, catering to the commercial, defense, and space sectors.
Can Airbus Meet Targets Despite Supply Challenges?
With 80 deliveries in November, Airbus’ total deliveries for 2024 reached 640 jets. For the full year, Airbus is targeting to deliver around 770 aircraft after reducing its estimate from 800 in July 2024. However, analysts at Jefferies expect the company to reach 765 deliveries and not 770 due to supply issues. Moreover, other analysts contend that the company must maintain a strong delivery pace to meet its target.
Looking back, Airbus encountered significant supply challenges, including labor and parts shortages, which impacted its production of passenger jets. As a result, Airbus is struggling to meet the strong demand fueled by the ongoing recovery in air travel.
Nevertheless, Airbus reiterated its target of 770 aircraft along with the release of its third-quarter results in October. Notably, Airbus typically accelerates deliveries towards the year’s end. Additionally, last week, engine manufacturer CFM agreed to allocate some engines to Airbus, assisting it in reaching its ambitious target for 2024.
Are Airbus Shares a Good Buy?
Based on a total of 13 recommendations, AIR stock has received a Moderate Buy rating on TipRanks. It includes nine Buys, three Holds, and one Sell recommendation. The Airbus share price target is €158.45, which is 5.5% above the current share price.
