Airbus Stock: All-Time High and Major Contract

Last Updated: 8. Dezember 2023By

The stock of Airbus has climbed to a new all-time high in the morning trading session today, trading for the first time above the 140 Euro mark (as of December 8th, around 10:30AM). The stock has been able to gain significantly in the past few weeks, bolstered by a large order and a raised target price from an analyst.

Overall, things are looking good for Airbus, as evidenced by their recent quarterly numbers. What’s particularly impressive is the continued high demand for Airbus aircraft, with the order book now being gigantic. Where the company still lags is in regards to supply chains and production speed, and these aspects could be the deciding factor for the future development of the Airbus stock.

In comparison to the same quarter last year, Airbus has increased their revenue by about 12% to almost 4.9 billion Euros. The adjusted EBIT has climbed 21% to 1.01 billion Euros, with 172 machines being delivered in Q3, 23% more than in the same period last year. Although the numbers were slightly below expectations, Airbus has confirmed their annual targets for 2023. In 2023, 720 aircraft should be delivered, and the adjusted EBIT should reach 6.0 billion Euros.

Today, Airbus announced that they have secured a large order from Cathay Pacific Airways. The airline has ordered 6 freight machines of the A350, with the option of 20 more. The list value of the order amounts to around 2.7 billion Dollars. The demand for Airbus aircraft is overall very high, with the order book currently amounting to around 8,000 machines.

Airbus Stock: Opportunities with Improved Supply Chains
This is where the current dilemma at Airbus comes in. 720 deliveries with an order book of 8,000 machines is very little. The company’s management expects more deliveries in 2024, but also acknowledges that the supply chains will remain strained.

Should a visible easing of these supply chains become apparent in the upcoming quarters, the potential for the Airbus stock will be great. The stock has currently reached a new all-time high at around 140 Euros, surpassing the previous 2020 record. Optimistic analyst comments have also contributed to this.

The Deutsche Bank has now raised their target price for the Airbus stock from 130 to 152 Euros. As with some other analyses, the improvement of the supply chains is seen as a decisive impulse. Investors should not ignore the course of the past few weeks, as corrections can never be ruled out. Nevertheless, the medium and long-term prospects for the Airbus stock are good.