EADS "neutral," estimates reduced

17.03.06 - J.P. Morgan Securities

LONDON, March 17 (newratings.com) - Analyst Harry W Breach of JP Morgan maintains his "neutral" rating on EADS (EAD), while reducing his estimates for the company. The target price is set to ?33.

In a research note published this morning, the analyst mentions that the company?s Airbus margins are likely to contract in the near future due to high R&D and less favourable hedging rates. Airbus? new order intake is likely to decelerate in late-2006, which is expected to adversely affect the company?s share price, JP Morgan adds. The EPS estimates for 2006 and 2007 have been reduced from ?2.55 to ?2.00 and from ?3.35 to ?2.35, respectively.