NEW YORK — Airbus SE’s American depositary receipts received a neutral “hold” consensus from several U.S. brokerages on Friday, signaling that Wall Street sees limited near-term upside for the European aerospace giant despite its bulging aircraft backlog.
In notes circulated to clients before the opening bell, analysts at JPMorgan, Jefferies and Bernstein reiterated their equivalent of hold recommendations on Airbus ADRs, citing a “full” valuation after the stock’s 37 percent rally over the past 12 months. The ADRs, which trade over the counter under the ticker EADSY, slipped 0.6 percent to $36.41 in mid-afternoon trading.
“Airbus continues to execute well on deliveries, but at 24 times forward earnings we struggle to see a catalyst for multiple expansion,” a Bernstein Research note seen by SourceRated said. JPMorgan analysts echoed that view, writing that the shares “already discount aggressive single-aisle production targets.”
The cautious stance comes even as Airbus sits on a record order book of about 8,600 commercial aircraft—enough to keep its assembly lines busy for roughly a decade at current output rates. Chief Executive Guillaume Faury told investors in February that the company intends to lift A320neo-family production to 75 jets per month by 2026, up from about 50 today. Airbus is scheduled to report first-quarter results on April 24.
Some market participants argue the neutral call is prudent given persistent supply-chain bottlenecks. “Engine shortages and labor constraints remain the wild cards,” said Sheila Koh, an aerospace sector strategist at Horizon Securities. “If bottlenecks ease faster than expected, estimates could prove conservative, but the reverse is also true.”
Airbus shares listed in Paris have outperformed U.S. rival Boeing by more than 60 percentage points since the start of 2023 as the American manufacturer battles 737 MAX quality issues. Nonetheless, Jefferies cautioned that currency movements—particularly a strengthening euro—could shave as much as €800 million off Airbus’s full-year operating profit if current trends persist.
Looking ahead, analysts said fresh order activity from Asian low-cost carriers and potential U.S. defense contracts could provide upside surprises later in the year. For now, most recommend investors stay on the sidelines. “We like the long-term story, but we need either a pullback or clearer evidence of supply-chain normalization before moving to ‘buy,’” the JPMorgan note concluded.