Airbus Group SE (FR:AIR) shares hit a new 52-week high of €145.22 on January 11 after the European aircraft maker hit record-high deliveries and net orders for 2023. Airbus said that it earned 2,319 gross orders and 2,094 net orders (post cancellations) in 2023. Meanwhile, deliveries rose 11% annually to reach 735 airplanes, surpassing its targeted deliveries of 720 jets.
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Airbus designs, manufactures, and provides aerospace products, space, and related services. It is one of the largest commercial aircraft manufacturers in the world. AIR shares have gained 25.5% in the past year.
Airbus’ Stellar Performance in 2023
Airbus has maintained the number-one spot as the top jet manufacturer in the world for the fifth consecutive year, leaving rival Boeing (NYSE:BA) behind. Airline companies have witnessed a stupendous surge in travel post-pandemic, pushing them to order more jets to renew their fleet. Airbus has repeatedly warned of supply challenges in the coming years. With an order backlog of 8,598 jets, Airbus is sold out for this decade for single-aisle jets and up to 2028 for wide-body jets.
Talking about the company’s performance, Christian Scherer, the CEO of the commercial aircraft business, said that travel demand picked up faster than expected. He is committed to delivering the backlog on time and with consistent quality. Moreover, Scherer said that the company would begin deliveries for Airbus’ new and longest-range single-aisle jet, the A321XLR, in the second quarter of this year.
Despite meeting record-high targets, Airbus CEO Guillaume Faury noted that the company is still far from its 2019 delivery levels of 870 planes. Faury does not see Airbus meeting those highs any time soon. In the meantime, Faury acknowledged the “increased flexibility and capability” in Airbus’ industrial system and said that the company will try to meet the target of manufacturing 75 A320neo family jets each month by 2026.
Is Airbus a Buy Right Now?
Following Airbus’ solid performance, two five-star analysts have given contrasting views on the stock. Encouraged by Airbus’ performance, Jefferies analyst Chloe Lemaire reiterated his Buy rating on AIR stock with a price target of €150.00 (4.3% upside).
At the same time, RBC Capital analyst Kenneth Herbert maintained a Hold rating on AIR stock with a price target of €140.00 (2.7% downside).
AIR stock has a Moderate Buy consensus rating on TipRanks based on seven Buys, four Holds, and two Sell ratings. The Airbus Group SE share price forecast of €147.83 implies 2.8% upside potential from current levels.
