Why Is Airbus Stock Up Today?

Core Viewpoint - After a period of declining stock prices, Airbus SE shares experienced a rebound, rising 4.3% without a clear reason [1] Group 1: Current Challenges - Airbus is facing significant issues with its A320 model, including a temporary grounding of 6,000 aircraft due to potential electronic disruptions from solar flares [3] - The company reported manufacturing defects from a supplier that resulted in variable thicknesses in metal panels for the A320, potentially affecting 628 planes [4] - Only 168 of the affected planes are currently in service, while the rest are in production, complicating the fix which requires inspections and possible replacements [5] Group 2: Financial Guidance - Airbus has lowered its 2025 delivery guidance from 820 to 790 planes, which is a negative development but not as severe as it could have been [6] - The company estimates it will still earn approximately $8.1 billion this year and generate free cash flow of about $5.25 billion if it meets the new target [6] - Current valuations place Airbus stock at around 23 times this year's earnings and 35 times free cash flow, indicating it may not be a cheap investment [7] Group 3: Investment Considerations - Recent software and quality control issues have negatively impacted Airbus stock, but the new guidance has provided some reassurance to investors [8] - Despite the challenges, some investors perceive Airbus stock as undervalued and a potential buy [7]