European Aero Defence & Space "neutral," estimates revised

01.03.07 - J.P. Morgan Securities

LONDON, March 1 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on European Aero Defence & Space Co (EAD), while revising their estimates for the company. The target price is set to ?25.

In a research note published this morning, the analysts mention that the company has initiated major restructuring named, "Power8," for Airbus. While EADS does not expect to incur any restructuring costs in 2006, it expects to book a charge of ?680 million, associated with lay-offs, in FY07. The analysts view this charge as significant and expect the company to record additional costs in FY07 and beyond. The EPS estimate for 2006 has been raised from -?0.10 to ?0.10. The EPS estimate for 2007 has been reduced from ?2.10 to ?1.90.