European Aeronautic Defence and Space "underperform," target price reduced

11.10.07 - Credit Suisse

LONDON, October 11 (newratings.com) - Analyst S East of Credit Suisse reiterates his "underperform" rating on European Aeronautic Defence and Space Company (EAD). The target price has been reduced from ?20 to ?18.

In a research note published yesterday, the analyst mentions that the company is being negatively impacted by the US dollar weakness. European Aeronautic Defence and Space?s Power-8 cost-cutting plan appears highly challenging, requiring ?2.1 billion of savings annually from 2010, the analyst says. The long-term margin estimate has been reduced from 7.5% to 6.25%.