UBS Upgrades Airbus to Buy on Strong Demand and Higher Production Rates

UBS has upgraded its rating on Airbus to "buy" citing strong demand and better-than-expected production rates. The bank forecasts a 20% increase in the company's shares over the next 12 months. Airbus is No. 1 in Europe and No. 2 worldwide in the aeronautics, aerospace, and defense industries. Its net sales are primarily generated from commercial aircraft, defense and aerospace systems, and civil and military helicopters.

UBS has upgraded its rating on Airbus to "buy" and expects a 20% increase in the company's shares over the next 12 months. This upgrade comes amidst strong demand and better-than-expected production rates. Airbus, the leading aerospace and defense company in Europe and the second-largest globally, has shown resilience in its commercial aircraft, defense, and aerospace systems, and civil and military helicopter segments.

In August 2025, Airbus produced 55 aircraft, including 38 A320neo family aircraft, eight A220s, five A330neos, and four A350s. The company's A320neo production dipped to 38 aircraft in August, which is below the program’s 50-aircraft-per-month target. However, Airbus produced eight A220s, all of which were A220-300s, stabilizing production at eight aircraft per month [2].

Boeing, on the other hand, produced 50 aircraft in August, with 37 737 MAXs, one 767, five 777s, and seven 787 Dreamliners. Boeing has stabilized 737 MAX production at 38 aircraft per month and aims to increase this rate to 42 aircraft per month, pending FAA approval [2].

Despite production challenges, Airbus delivered 58 aircraft in August, with 44 narrowbodies and eight widebodies. Boeing delivered an estimated 57 aircraft, including 42 737 MAXs and nine 787s [2].

UBS's positive outlook is supported by Airbus's strong order book and the company's ability to adapt to market demands. The upgrade reflects the investment community's confidence in Airbus's future growth prospects. As the aerospace industry continues to recover from the COVID-19 pandemic, Airbus's position as a leading player in commercial aircraft and defense systems is expected to drive its share price higher.

References:
[1] https://finance.yahoo.com/quote/AIR.PA/
[2] https://flightplan.forecastinternational.com/2025/09/02/airbus-and-boeing-august-2025-production-rates-and-unofficial-deliveries/