EADS upgraded to "hold"

21.09.07 - Deutsche Securities

NEW YORK, September 21 (newratings.com) - Analyst Benjamin Fidler of Deutsche Bank Securities upgrades EADS (EAD) from "sell" to "hold." The target price has been raised from ?19 to ?21.

In a research note published yesterday, the analyst mentions that the company?s share price has declined by 22% year-to-date. Airbus is likely to face lower pricing pressure than was earlier anticipated and newsflow at Power8 is expected to improve in 2H, the analyst says. In view of the better-than-expected Airbus order intake in 2007, cash concerns are unlikely to impact EADS in the near term and, hence, the possibility of a near-term capital raising exercise is fading, Deutsche Bank Securities adds.