RBC Capital raises Airbus stock price target on improved delivery outlook

RBC Capital raised its price target on Airbus (AIR:FP) to EUR220 from EUR200, maintaining an Outperform rating, citing an improving outlook for second-half 2025 deliveries, management's increased confidence in supply chain conditions, and production ramp-ups including the restart of the A350 line. This upgrade, supported by a perfect Piotroski Score of 9 and recent Q2 2025 adjusted EBIT margin surpassing consensus, underscores strengthening operational execution and an optimistic long-term production trajectory, despite recent challenges like potential labor disputes and June delivery shortfalls.

Analysis

RBC Capital has raised its price target on Airbus to EUR220 from EUR200, maintaining an Outperform rating, following a constructive meeting with management and a tour of its production facilities. This optimism is founded on an improving outlook for second-half 2025 deliveries and increased management confidence regarding supply chain conditions. Operationally, Airbus is ramping up production by restarting a third A350 line and running two shifts on its new A320 line. The company's financial health is underscored by a perfect Piotroski Score of 9, and its recent Q2 2025 results showed an adjusted EBIT margin of 9.8%, surpassing the 9.3% consensus despite flat revenue. Further bullish sentiment comes from the defense sector, where Deutsche Bank lifted its price target to €185 on expectations of higher NATO spending, and the UK and France have placed new orders for Storm Shadow missiles. However, these positive developments are tempered by significant near-term risks, including a potential 10-day strike by over 3,000 UK workers and June aircraft deliveries that fell below the pace required to meet the annual target.

Key Decisions for Investors

• The series of positive analyst revisions, underpinned by an improving production outlook and management's increased confidence in the supply chain, supports a strengthening fundamental thesis for Airbus.
• Investors should closely monitor near-term operational execution, particularly the monthly delivery rates against annual targets and the potential financial and production impact of the looming UK labor strike.
• The company's defense segment, benefiting from increased NATO spending and new missile orders, offers a complementary growth driver that may hedge against volatility in the commercial aircraft business.