EADS "neutral," estimates reduced

11.05.07 - J.P. Morgan Securities

LONDON, May 11 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on EADS (EAD), while reducing their estimates for the company. The 12-month target price is set to ?24.

In a research note published yesterday, the analysts mention that the company has posted its 1Q07 EBIT significantly ahead of the estimates and the consensus due to favourable hedging and an increase in delivery volumes at Airbus. EADS? underlying performance was healthy during the quarter, the analysts say. The company is expected to face high pricing competition and adverse currency valuation in 2H07 and 2008, JP Morgan adds. The EPS estimate for 2008 has been reduced from ?2.00 to ?1.85.