EADS "buy," target price reduced

11.04.08 - LB Baden-Württemberg

LONDON, April 11 (newratings.com) - Analyst Stefan Maichl of Landesbank Baden-Württemberg maintains his "buy" rating on EADS (EAD), while reducing his estimates for the company. The target price has been reduced from ?27 to ?20.

In a research note published yesterday, the analyst mentions that the company has issued weaker-than-expected earnings guidance for 2008, which appears to be conservative. EADS is likely to deliver substantial profit growth in 1Q and an improvement in profits at its non-Airbus segments in 2008, Landesbank Baden-Württemberg adds. The analyst adds, however, that there is uncertainty surrounding the market environment. The EPS estimates for 2008 and 2009 have been reduced from ?1.67 to ?1.28 and from ?2.34 to ?1.74, respectively.