Rebound envisaged for the Airbus Group

  •   20/03/2020 - 16h04
  •   HARMANT Adeline

While it has suffered a very significant drop in the last few sessions, the Airbus share price now seems to be starting an interesting rebound and could even see its value rise further in the coming sessions. Here are some explanations about the situation of this stock and the expectations of analysts.

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Rebound envisaged for the Airbus Group

A rebound that started well this morning on the stock market:

Following several consecutive weeks of decline, the Airbus share price finally seems ready to rise in this session of Friday, March 20, 2020. Indeed, one observes in the morning a rebound of about 17% with a listing at 62.8 euros in the morning in Paris. Note that the stock had already recorded a 9% increase yesterday.

Although this rebound does not really erase the fall of more than 50% in the value of this stock accumulated since the beginning of the year, it marks the beginning of a trend that is undoubtedly interesting.

This pleasant surprise is not only due to the fact that the markets evolved in an optimistic way this weekend. But today's buying wave is also the result of a decision to raise Jefferies' rating, which has just changed its opinion to "buy" on this stock, despite a reduction in the price target from 120 to 80 eurors.

According to the broker, European states should prepare to buy new Airbus aircraft in order to support the entire aviation and aerospace industry in the face of the current crisis facing this sector in particular.

The broker thus envisages that the various governments will buy between 500 and 600 aircraft manufactured by the Airbus group over the next three years, which would represent a total investment of nearly 34.2 billion euros. This amount should therefore not require too great an effort since it will be spread over several countries. This analyst talks about this possibility as a hard but effective solution compared to the granting of a loan to companies which does not seem to be a particularly interesting option.

 

The price targets envisaged in this rebound.

This morning and according to the various analyses of specialists in this market, the Airbus share price announces a rebound to 48.12 euros. However and if we consider that this rebound may be proportional to the crash that caused the price of this share to fall from 139.40 euros to 48.42 euros, a division of the price by 3, the first objective of this rebound would be at the level of 70 euros, the former low of mid-July 2017.

The next objective would thus be that of closing the gap of 85.65 euros dating from March 11, last week.

Of course, we will remain on the lookout for confirmation or invalidation of the theory put forward by Jefferies in order not to suffer a further fall in the market if this proposal fails.