The bad news is in the price and even with the EUR screaming it keeps going up, add to that the massive discount to Boeing and there are no sellers.
We step aside for a nice loss. Merci!
SHORT INTO Q2
Friday • 14th July 2017 • 10:22
The bull case is well known, FCF inflection and massive improvement from next year as the various A350/A320neo etc issues diminish. As a result the bulls are largely ignoring this year and have re-rated the stock despite a number of headwinds.
Airbus has already said that deliveries will be even more backloaded this year and weaker pricing, which suggests a small quarter for EBIT and weak cash with the inventory build – DB, Exane and ML all out today with sub 900m EBIT numbers for the quarter vs cons at 977.
And importantly, but largely ignored, is the EUR/USD ‘tailwind’ which has entirely unwound and will certainly become an issue should be break above 1.15. YTD highs +19% given these issues and a weak quarter,
Still loved by the street with 20 Buys, 8 Holds and ONLY 2 Sells.
It’s a trading sell.