EADS "hold," target price reduced

14.03.08 - UniCredit Markets & Investment Banking

LONDON, March 14 (newratings.com) - Analyst Stefan Halter of UniCredit Markets & Investment Banking maintains his "hold" rating on EADS (EAD), while reducing his estimates for the company. The target price has been reduced from ?19.60 to ?17.00.

In a research note published this morning, the analyst mentions that the company has issued disappointing guidance for 2008, with revenues expected to exceed ?40 billion and EBIT at ?1.8 billion. EADS has projected a decline in its EBIT in 2009 primarily on account of a weak US dollar. The EPS estimates for 2008 and 2009 have been reduced from ?2.05 to ?1.38 and from ?2.27 to ?1.50, respectively, reflecting lower margins at Airbus.