Buy signal on Airbus (AIR-FR)

25/02/2021

We had an Enter Long signal on February 24th 2021, triggered by our system on AIR-FR, Airbus, the French Aerospace company.

Airbus is a €72 Bn market cap and the leader in Europe and No. 2 worldwide in the aeronautics, space and defense industry. Revenues split between 3 main segments :

1/commercial aircraft (77% of sales), Airbus is world leader in aircraft with more than 100 seats;

2/defense and aerospace systems (15%) including military aircraft (particularly transport, maritime surveillance, anti-submarine fighter and air-to-air refueling aircraft), space equipment (orbital launchers, observation satellites and communications, turboprop aircraft, etc.), defense and security systems (missile systems, electronic and telecommunications systems, etc.). Airbus SE also offers aircraft training and maintenance services;

3/civil and military helicopters (8%).

Airbus posted a net loss of €1.1 bn in 2020, but a profit of €1.6 bn in Q4, nearly 60% above market expectations. At the end of September, Airbus had delivered only 341 planes and had 135 aircraft manufactured but not shipped to their customers due to the health crisis.In addition, the company managed to register 268 net orders in 2020, increasing its order book to 7,184 commercial aircraft, what secures the company’s revenue over a decade.

Among other positive, a pause in the « subsidies war » concerning Boeing and Airbus could be on the Agenda between the US and France.

Short term catalyst : Reopening of the world economy, pause in "tarifs war".

This signal looks consistent with the Aerospace & Defence sector in Major Bullish Trend.