EADS upgraded to "overweight"

04.10.07 - J.P. Morgan Securities

LONDON, October 4 (newratings.com) - Analysts at JP Morgan upgrade EADS (EAD) from "neutral" to "overweight," while reducing their estimates for the company. The target price has been raised from ?25 to ?26.

In a research note published this morning, the analysts mention that the company?s order cycle is unexpectedly bouncing back and the consensus expectations for 2008 EPS are likely to prove to be too low. EADS? stock is currently trading at a near-record discount to that of Boeing, the analysts say. The upward revision in the target price is on account of higher peer multiples, JP Morgan adds. The EPS estimate for 2008 has been reduced from ?2.30 to ?2.20 on account of a weak dollar.