Background of the Upgrade
The recent decision by Jefferies to upgrade Airbus from “Hold” to “Buy” is a significant step that reflects analysts’ assessment of one of the leading companies in the aerospace sector. This change in recommendation came before the release of the quarterly reports for the first quarter of 2025 and reflects a strategic reevaluation of the industry.
Analytical Assessment
The upgrade by Jefferies analyst Chloe Lemarie is based on positive developments in the defense sector and a reevaluation of the civil aviation industry, which has been influenced by tariff-related concerns.
Quarterly Reports
Airbus released its quarterly reports in April 2025, showing a revenue growth of 6% to 13.5 billion euros. Adjusted EBIT remained stable at 0.6 billion euros, while free cash flow before customer financing was negative.
Production Performance
Despite a softer start to the year, production results exceeded expectations, alleviating concerns about the impact of tariffs.
Impact on Investors
The price target has been lowered from 180 to 175 euros, indicating an adjustment of expectations for the civil aviation sector. This change in recommendation may help investors reconsider their investment strategies in the aerospace sector, especially with regard to the potential restoration of the 1979 trade rules, which could lead to a significant reevaluation of the company.
Summary
The upgrade of Airbus by Jefferies reflects positive developments in the defense sector and an adjustment to the changing market conditions in civil aviation. This decision may assist investors in optimizing their investments in the aerospace sector, especially in light of potential changes in global trade rules.