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Airbus shares slip after jet maker lowers annual delivery target

Stock Markets Dec 07, 2022 05:40
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By Scott Kanowsky 

Investing.com -- Shares in Airbus SE (EPA:AIR) fell on Wednesday after the planemaker slashed its full-year guidance for aircraft deliveries and withdrew a planned date to hit a key production goal.

In a statement on Tuesday, the world's biggest jet manufacturer said its prior target of "around 700" deliveries in 2022 is now "out of reach." It added that the final figure is now not expected to fall "materially short" of "around 700," but did not provide a specific total.

Airbus said the decision was based on its November deliveries, which came in at 68. According to Reuters, suppliers had penciled in an industrial planning target for the month of 80.

The delivery number for the year to November was 563 after adjusting for the cancellation of two planes due to international sanctions slapped on Russia, following the outbreak of the war in Ukraine earlier this year.

The European aerospace giant also warned that it is facing a "complex operating environment." Analysts have noted that Airbus, as well as major rival Boeing Co (NYSE:BA), have faced delays from supply chain disruptions throughout 2022.

Airbus still expects to hit its interim production target of 65 A320 family jets but changed the timeframe for this goal to between 2023-2024. The company had aimed to reach 65 by early 2024 after moving back its scheduled goal of mid-2023 earlier this year because of supply issues.

However, Airbus maintained its guidance for both adjusted earnings before interest and taxes and free cash flow.

Analysts at Deutsche Bank called Airbus' financial outlook "conservative" and a justification for the slight adjustment in their price target for the stock down to €130 per share from €133. Jefferies analysts also slashed their price target to €132 per share.

Meanwhile, Citi analysts maintained their €171 per share price target and "Buy" rating for Airbus, saying that the updated delivery timetable is a "minor delay" that minimally impacts the group's value.

Airbus shares slip after jet maker lowers annual delivery target
 

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