Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE.

Airbus (ENXTPA:AIR) is back in focus after Air Canada confirmed a firm order for eight A350-1000 jets, plus options for more, highlighting airline interest in efficient, long-haul widebodies.

See our latest analysis for Airbus.

At a share price of €197.2, Airbus has seen a 2.5% 1 day share price return and 2.1% 7 day share price return. However, a 9.3% 30 day share price decline suggests recent momentum has cooled, even as 1 year and 5 year total shareholder returns of 18.3% and 120.3% point to a much stronger longer term record.

If this A350 order has you thinking about where growth in aviation and automation could come from next, take a look at 32 robotics and automation stocks as a fresh set of ideas.

With Airbus trading at €197.2 and showing a mix of short term weakness alongside solid multi year returns, the real question is whether the current valuation still leaves upside on the table or if the market already prices in future growth.

Most Popular Narrative: 14.8% Undervalued

According to the most followed narrative on Airbus, a fair value of €231.41 sits above the current €197.2 share price, which frames this latest A350 win in a wider long term story.

Airbus is not a hyper-growth story. It is a backlog-driven, duopoly industrial platform with improving governance and operational discipline.

Read the complete narrative.

Want to see what sits behind that sovereignty call, according to Tokyo? The narrative leans heavily on steady revenue expansion, rising profit margins and a future earnings multiple that assumes Airbus keeps compounding at scale. Curious which specific growth and profitability levers are doing the heavy lifting in that model, and how they line up with today’s €197.2 price and €231.41 fair value?

Result: Fair Value of €231.41 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there is still the risk that supply chain bottlenecks or setbacks in defence programs could pressure margins and challenge the idea that Airbus is 14.8% undervalued.

Find out about the key risks to this Airbus narrative.

Next Steps

If this all sounds optimistic, it is worth checking the numbers yourself and moving quickly to shape your own view. You can start with 4 key rewards.

Story Continues

Looking for more investment ideas?

If you are serious about sharpening your portfolio, do not stop with one stock. Use the screener to uncover a broader set of opportunities that fit your style.

Target long term compounding potential by scanning our universe for quality companies trading below what the market implies through 224 high quality undervalued stocks. Strengthen your income stream by zeroing in on companies with robust payouts using our set of 442 dividend fortresses. Protect your downside first by filtering for companies with conservative finances using the solid balance sheet and fundamentals stocks screener (371 results) and see which ones you might be missing.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AIR.PA.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

View Comments