European Aeronautic Defence and Space "neutral," target price raised

18.01.07 - J.P. Morgan Securities

LONDON, January 18 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on European Aeronautic Defence and Space Company (EAD), while revising their estimates for the company. The 12-month target price has been raised from ?21 to ?24.

In a research note published this morning, the analysts mention that the upward revision in the target price is based on a shift in the base year. Airbus is now likely to report EBIT losses for 2006, which may be offset by EBIT from European Aeronautic Defence and Space?s other divisions, the analysts say. European Aeronautic Defence and Space has reported its 2006 net orders short of the estimates and orders are likely to fall further in 2007, JP Morgan adds. The reported EPS estimates for FY06 and FY08 have been reduced from ?0.15 to -?0.10 and from ?2.05 to ?2.00, respectively. The EPS estimate for FY07 has been raised from ?1.90 to ?2.10 since charges meant for 2007 were recorded in 2006.