AIR FP

Airbus Group SE

Industrial/Transportation


Presented:02/28/2023
Price:€124.02
Cap:$108.79B
Current Price:€135.76
Cap:$119.68B

Presented

Date02/28/2023
Price€124.02
Market Cap$108.79B
Ent ValueN/A
P/E Ratio22.99x
Book ValueN/A
Div Yield1.21%
Shares O/S787.56M
Ave Daily Vol1,201,168
Short IntN/A

Current

Price€135.76
Market Cap$119.68B
Airbus SE is a holding and management company, which engages in the design, manufacture, and marketing of aerospace products, services, and solutions. It operates through the following segments: Airbus, Airbus Helicopters, and Airbus Defense and Space. The Airbus segment offers jet aircraft, aircraft conversion and related services, turboprop aircraft, and aircraft components. The Airbus Helicopters segment is composed of civil and military helicopters and related services. The Airbus Defense and Space segment includes military aircraft, which supports combat, mission, transport and tanker aircraft, and associated services; space systems, which provides a range of civil and defense space systems for telecommunications, earth observations, navigation, science, and orbital systems; and connected intelligence, which refers to services around data processing from platforms, secure communication, and cyber security. The company was founded on December 29, 1998 and is headquartered in Blagnac, France.

Publicly traded companies mentioned herein: Airbus SE (AIR FP), Boeing Co/The (BA)

Highlights

The presenter is long shares of Airbus SE (AIR FP), believing the commercial aerospace market is uniquely a secular grower while also overcoming cyclical hurdles. The pandemic caused the most damaging cycle the industry has ever experienced, but those issues should reverse, and global travel grows at 2x GDP. There is a global duopoly in the space between AIR and BA, and while AIR is winning in the attractive narrow body market, it is currently being held back by supply chain issues. Looking out to 2026 and using AIR’s historical 19x earnings multiple, which is below the current 22.5x valuation on 2023 consensus EPS, he thinks the stock can double over the next few years as supply chains normalize and production ramps. 

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Idea Discussion

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