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(Sharecast News) - Deutsche Bank downgraded Airbus to 'hold' from 'buy' on Tuesday after the company cut its earnings guidance and delivery targets on Monday.
The bank cut its price target on the shares to 155 from 186, describing the profit warning as "rather damaging".
"We sharply cut our EBIT and free cash flow estimates by 13-20% for 2024-2026, as the delivery ramp-up is deferred by a year on persistent supply-chain issues," DB said.
"In addition, Space systems continues to underperform, after an already difficult 2023. The situation is reminiscent of the 2022 delivery miss, but further compounded by Space this time."
Deutsche said the dust needs to settle before it can turn positive again.
"June deliveries are apparently sluggish and there is no guarantee at this stage that the new delivery target will be easy to achieve by year-end," it added.
At 1250 BST, Airbus shares were down 11.6% at 131.50.
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