If the civil aeronautics sector suffers a lot, and has done so for several months now, from the health and economic crisis caused by the Covid-19, the Airbus group could finally get out of it thanks to its space and defence division which is resisting the current hazards. According to analysts, the Airbus share therefore remains attractive at present, at least as far as the signals of fundamental analysis are concerned. On the technical level, exceeding the resistance of 71 euros could allow the stock to start an interesting uptrend.
According to the latest news, some analysts, including Crédit Suisse, remain optimistic about the French group's share price. The target price targeted by this broker is thus 78 euros, which would represent an increase of 14%. Indeed, the latter believes that the rebound in profits and cash has not yet been taken into account by the market and therefore favours this stock over this sector of activity in particular.
However, fundamentals from Airbus remain hesitant with orders down sharply and several deliveries postponed. In addition, employment in the French group is also lagging behind with many departures expected at the French sites of Toulouse and Saint-Nazaire.
If we look at the group's communication, the signals are still encouraging in this period of fallout from the coronavirus crisis in the aeronautics industry, which Airbus has of course paid for. The aircraft manufacturer's situation thus seems to be stabilising and the broker Crédit Suisse thus indicates that 2022 should be the starting point for a resumption of the group's key programme on the A320. However, the group is expected to face some difficulties in reducing fixed costs on large A350 aircraft. However, Credit Suisse has slightly reduced its earnings per share forecast for the financial year 2020 due to anticipated restructuring costs.in return, it has raised its earnings targets for 2021, thanks in particular to the support of the group's defence and space division, which is holding up better than expected.
While the fundamental signals for the Airbus share seem rather positive in the light of the current situation, the charts should also be consulted before getting a clearer idea of the share's potential for development.
As far as the technical analysis of this value is concerned, it can be observed that the Airbus share has been in a horizontal tunnel for two months now. It remains difficult to anticipate the next steps due to a rather low transaction volume and the approach of the winter period.
However, it can be observed that the Airbus share has experienced two successive rebounds on the 60 euros and thus seems to be seeking to gain points. However, one must take into account the downtrend that has been plunging this stock since the beginning of the year and which has a definite psychological impact on the market.