EADS "buy," target price reduced

14.06.06 - Merrill Lynch

LONDON, June14 (newratings.com) - Analysts at Merrill Lynch reiterate their "buy" rating on EADS (EAD-EUR). The price objective has been reduced from ?32.50 to ?30.00.

In a research note published this morning, the analysts mention that the company has issued a price warning for 2007-2009 due to a delay in the ramp up of A380 production. The revised schedule for A380 production is likely to result in a reduction in profits of around ?500million per annum for EADS, the analysts say.