Airbus (OTC: EADSY) received a boost from two stock analysts today, with Barclays lowering its price target on the stock to 185 euros while maintaining an “overweight” rating, and Kepler Cheuvreux upgrading the European aerospace giant to a “buy” with a 170-euro price target. As a result, Airbus shares surged 2.8% higher in early trading.
The past month has been challenging for Airbus, with the stock down about 8% due to concerns about higher macroeconomic risks. However, the stock has rebounded in the past three weeks, gaining about 10%. Kepler believes there is more upside potential for Airbus and agrees with Barclays that it is a buy.
Comparing Airbus to its rival Boeing (NYSE: BA), Airbus appears to be in a stronger position. Airbus reported a profit of $4.4 billion last year, while Boeing suffered an $11.5 billion loss. Airbus is expected to grow its earnings to $5.8 billion this year, while Boeing is struggling to generate any profits. Looking ahead to 2026, Airbus is forecasted to earn $7.3 billion, nearly double what Boeing is expected to earn.
While Airbus stock may not be a bargain at 26 times earnings, it is clearly outperforming Boeing. With Boeing receiving an upgrade to “outperform” today, it begs the question of why Airbus shouldn’t also be upgraded.
Before investing in Airbus SE, it is essential to consider the insights from the Motley Fool Stock Advisor analyst team. While Airbus was not included in their list of the 10 best stocks to buy now, the selected stocks have the potential to deliver significant returns in the future.
In conclusion, Airbus’s current performance and outlook make it an attractive investment opportunity relative to Boeing. Investors should carefully analyze the company’s financials and future prospects before making any investment decisions.
