Airbus Group SE delivered 64 commercial aircraft in November, while no new orders were booked last month as the aviation crisis tied to the coronavirus pandemic throttled demand for new aircraft.
The November figures take Airbus’ (EADSF) deliveries to 477 jets so far this year, down more than 30% compared to the same period last year. With only one month left in 2020, Bloomberg reported that the European plane manufacturer was on track to deliver about 530 aircraft this year, after a second-half push to clear jet backlogs eased some of the impact from the coronavirus pandemic.
Airbus data showed that aircraft deliveries in November were down from the 72 recorded in October and dropped 17% from the 77 jets handed over in November last year.
Shares in Airbus have lost more than 20% of their value this year as airline travel has fallen off a cliff due to lockdown restrictions forcing many airlines around the world to ground the majority of their fleets and to sharply reduce spending. This has resulted in a deep cut in the number of commercial jets planemakers’ customers need over the next few years with some asking for delivery delays or order cancellations.
However, the stock has jumped 21% over the past month amid optimism related to the success of an effective Covid-19 vaccine, which could kickstart a faster recovery for the aviation industry. (See Airbus stock analysis on TipRanks)
J.P. Morgan analyst David Perry last month upgraded the stock to Hold from Sell with a price target of $90.99 (21% downside potential). The analyst believes that the recent news on Covid-19 vaccine progress brings a “light at the end of the tunnel” for the aerospace industry.
The rest of the Street has a cautiously optimistic stance on the stock. Out of 14 recent analyst reviews, 9 have Buy ratings, 4 have Hold ratings, and 1 has a Sell rating, which add up to a Moderate Buy consensus. Meanwhile, the average price target set at $106.67, indicates 8% downside potential over the coming 12 months.
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