Airbus Looks Undervalued & More Cash-Rich Than Boeing
Airbus's "more mature" product
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October 16, 2019 - by rt.com
Equity analysts at Barclays say the immediate future for European aerospace giant Airbus looks "brighter than ever," thanks to a mature portfolio offering reliable cash flow over the next five years.
"Central to our investment thesis on Airbus is our view that the scale and predictability of its FCF (free cash flow) is superior to Boeing, yet Airbus trades at a much larger than normal discount to Boeing," Barclays aerospace analysts said in a research note seen by CNBC.
The analysts have listed a price target of €155 ($171) per share with an "overweight" rating. Airbus stock was priced at just over €119 per share on the French CAC-40 Tuesday morning.
Boeing's current share price is $372 and has risen nearly 16 percent year-to-date. Airbus's range of jet planes is projected to "outgrow" Boeing's by 2024.
Analysts explained that by pointing to the US plane maker's grounded 737 MAX and the challenges faced in getting its new 777X into commercial service.
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