Airbus initiated with a Sector Perform at RBC Capital

RBC Capital analyst Ken Herbert initiated coverage of Airbus with a Sector Perform rating and EUR 140 price target. The company is poised to push production aggressively into the strong demand environment, but continued supply chain stress will limit its 2025 and mid-decade upside, the analyst tells investors in a research note. The firm sees positive catalysts from capital allocation, aircraft orders, and delivery upside, but says the stock’s valuation limits the near-term upside.