Should I buy airbus se shares
10/27/2024 10:57pm
**Consideration for Buying Airbus SE Shares**:
1. **Financial Performance and Growth Prospects**:
- Airbus SE has demonstrated strong revenue growth, with consolidated revenues increasing by 11% year-on-year to €65.4 billion in 2023. This growth is a positive indicator for the company's ability to expand its market share and increase profitability.
- The company's EPS (Diluted) for the trailing twelve months (TTM) ended in June 2024 was $1.06, which suggests a stable earnings per share over the past year.
2. **Market Position and Recent Developments**:
- Airbus SE is a leading player in the aerospace and defense industries, with a strong market position worldwide. The company's significant order intake and delivery of commercial aircraft highlights its ability to meet market demand.
- The recent decision by Airbus SE to cut up to 2,500 jobs in its Defence & Space division is a strategic response to financial setbacks and is expected to streamline the business. This move could potentially improve the company's financial health and profitability in the long term.
3. **Valuation and Analyst Sentiments**:
- The company's average consensus price target is €158.16, with a high forecast of €181.58 and a low forecast of €108.75, indicating a potential upside from the current price levels.
- Analysts have a mixed outlook on the stock, with some downgrading their price targets and ratings, which could be indicative of varying views on the company's future performance.
4. **Industry and Economic Factors**:
- The aerospace and defense industries have seen impressive returns, with the iShares US Aerospace & Defense ETF showing a 22% year-to-date increase in 2024. This sectoral growth could positively impact Airbus SE's performance.
- However, geopolitical tensions and the ongoing labor strike at Boeing could pose challenges for the industry, which may impact Airbus SE's operations and demand for its products.
In conclusion, while Airbus SE shows strong growth potential and financial performance, the decision to buy shares should be based on your investment strategy, risk tolerance, and analysis of the current market conditions. It is also advisable to review the most recent company announcements, earnings reports, and industry trends to make an informed decision.