European Aeronautic Defence and Space "overweight," target price raised

15.05.08 - J.P. Morgan Securities

LONDON, May 15 (newratings.com) - Analysts at JP Morgan reiterate their "overweight" rating on European Aeronautic Defence and Space Company (EAD), while reducing their estimates for the company. The 12-month target price has been raised from ?24 to ?25.

In a research note published this morning, the analysts mention that the company has reported its 1Q08 EBIT ahead of the estimates and the consensus, mainly driven by higher-than-expected Airbus revenues and margins. European Aeronautic Defence and Space reiterated its EBIT guidance for the year at ?1.8 billion, which appears highly conservative, the analysts say. The upward revision in target price reflects higher peer multiples, JP Morgan adds. The reported basic EPS estimate for 2008 has been reduced from ?2.05 to ?1.80.