On Thursday, Morgan Stanley (NYSE:MS) updated their outlook on Airbus SE (AIR:FP) (OTC: OTC:EADSY), increasing the price target to €200 from the previous €160, while maintaining an Overweight rating on the stock. The adjustment reflects a positive perspective on the company's future, despite ongoing supply chain challenges.
Analysts at the firm acknowledged the persistent supply chain issues but noted signs of improvement that could enhance Airbus's execution in the near future. This progress is expected to bolster market confidence in the company's ability to meet its medium-term delivery targets, potentially leading to a reevaluation of the stock's value.
The revised price target is based on a projected price-to-earnings (PE) multiple of 18 times for the year 2027. Analysts at Morgan Stanley expressed a strong belief in the favorable risk-reward balance for Airbus, suggesting a significant upside potential for investors.
While cautioning that the aerospace industry is not yet completely clear of obstacles, the analysts conveyed a sense of optimism for the year 2025. As a result of this positive outlook, Airbus has been named Morgan Stanley's new Top Pick in the Aerospace sector.
Investors and market watchers will likely monitor Airbus's performance closely, particularly in terms of how it navigates the supply chain difficulties and strives to meet its delivery commitments in the coming years.
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