Two analysts tracking the aerospace giant cut their price targets on its equity.
Despite that, the pair remained bullish on its prospects.
On a generally bullish Thursday for the U.S. stock markets, Airbus (OTC: EADSY) wasn't a popular title. The sprawling European aerospace company took a nearly 2% hit to its share price, on the back of two analyst price target cuts.
The two prognosticators in question -- Christophe Menard of Deutsche Bank and UBS's Ian Douglas-Pennant -- both labor for Europe-headquartered researchers. On Thursday morning, Menard reduced his Airbus fair value assessment to 222 euros ($259) per share, from his previous 228 euros ($266). Douglas-Pennant cut his to 230 euros ($268) from 240 euros ($280).
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These lowered expectations don't mean that either analyst is now an Airbus bear, however, as both maintained their existing buy recommendation on the stock.
It wasn't immediately clear why either pundit adjusted their takes on the company. It didn't seem coincidental that the two price target cuts came a day after Airbus cut its full-year 2025 delivery estimate. It's reduced this estimate by 4% to a total of roughly 790 jets for the year, due in no small part to a several manufacturing issues with its A320 airliner.
It's probable that the two analysts held fast to their buy recommendations because this news from Airbus isn't too alarming.
No one likes a cut in delivery estimates, but there is clear demand for the A320, and it isn't outrageous or unusual for manufacturers of highly sophisticated planes to experience such difficulties. I think the company will work these out, so these latest developments wouldn't scare me away from owning the stock.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.