EADS "neutral," target price raised

30.07.07 - J.P. Morgan Securities

LONDON, July 30 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on EADS (EAD), while raising their estimates for the company. The 12-month target price has been raised from ?24 to ?26.

In a research note published this morning, the analysts mention that the company has posted mixed 1H07 results, which exhibit continued execution risks. EADS has reported its clean EBIT and free cash flows for the six-month period ahead of the estimates, the analysts say. The company has indicated that it would incur new charges at Eurocopter going forward and pointed towards potential additional A400M charges. The EPS estimates for 2007 and 2008 have been raised from ?0.10 to ?0.20 and from ?1.86 to ?2.30, respectively.