Analyst Note| Burkett Huey, CFA |
Wide-moat-rated Airbus posted an impressive second quarter, as the company begins reramping production of the A320 family of aircraft to serve increasing customer demand. Sales of EUR 14.2 billion and EPS of EUR 2.38 topped FactSet consensus by 2.2% and 68.4%, respectively. After incorporating second-quarter earnings into our model, we are increasing our fair value estimate to EUR 134 per share from EUR 127 and to $39.50 from $39 for the U.S. shares as we account for a greater proportion of the higher-price and higher-margin A321s versus the A320 within the sales mix over the long term. We continue to think Airbus will be the dominant plane manufacturer of the 2020s.