RBC Lifts Price Target, Estimates for Airbus Post-Business Update

03:57 AM EDT, 07/23/2026 (MT Newswires) -- RBC Capital Markets revised its price target and earnings forecasts upwards for Airbus (AIR.PA, AIR.F) after the European aircraft manufacturer disclosed its full-year 2029 financial targets and announced a 5 billion-euro share buyback. "Airbus (AIR-FR) hosted its 2026 Farnborough business update. The highlight of the update was the establishment of 2029 targets, calling for EUR12B - EUR13B in adj. EBIT, a ~1x [free cash flow] conversion ratio, and EUR5B share buyback program. Notably, the company provided a guide for its Airbus Commercial segment, anticipating ~EUR10B in adj. EBIT in FY29. We believe the outlook was more positive than investors' lowered expectations across several metrics (buybacks, EBIT ramp, long-term outlook), and should continue to support a re-rating on the shares," according to a Wednesday note. The research firm views Airbus' adjusted EBIT outlook for its commercial unit as "conservative," noting that the figure is "largely consistent" with previous profitability expectations. Analysts anticipate most of this EBIT expansion will be fueled by the A321 program. "One of the most important aspects of the outlook is that Airbus is confident that there is more upside beyond 2029. Specifically, the company called out better pricing and potentially higher volume on the A350, production efficiency across the [final assembly lines], and further upside in its services opportunity. The fact that 2029 is not peak earnings or [free cash flow] was important for sentiment," the note said. Accordingly, RBC raised the outperform-rated stock's price target to 225 euros from 215 euros and lifted its earnings projections, including revenue, adjusted EBIT and adjusted EPS, for 2026 through 2028.