Airbus SE is a buy, this investor says

Bruce Murray, CEO and CIO of Murray Wealth Group, told BNN Bloomberg Market Call on March 11 that Airbus SE (Airbus SE Stock Quote, Chart, News, Analysts, Financials PA:AIR) represents an attractive opportunity following a recent pullback in the shares.

Murray said the aerospace manufacturer has declined roughly 20%, partly reflecting investor concerns tied to aviation traffic disruptions and safety issues in the United States.

Despite that, he said Airbus maintains a backlog exceeding 10 years for commercial aircraft, providing strong long-term visibility for its core airliner business.

Murray added that about 20% of Airbus’ business is tied to European defence, including the production of fighter jets and drones, positioning the company to benefit as Europe increases military spending.

“I think it’s just a very easy story,” Murray said. “It’s backed off about 20%. We think you’ll get that back and more over time. It’ll be a slow, steady upward trend.”

Of the analysts covering the stock, three rate Airbus “Buy,” one “Hold,” and none “Sell,” with a consensus price target of US$64.45.

The shares closed March 11 at US$51.49.

 

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Rod Weatherbie

Rod Weatherbie is a journalist based in Prince Edward Island. Since 2004, he has written extensively about the Canadian property and casualty insurance landscape. He was also a founder and contributing editor for a Toronto-based arts website and a PEI-based food magazine. His fiction and poetry have been featured in The Fiddlehead, The Antigonish Review, and Juniper.

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