Boeing Company (BA)

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Analysts explained that by pointing to the US plane maker’s grounded 737 MAX and the challenges faced in getting its new 777X into commercial service.

Airbus’s “more mature” product range could guarantee smoother income, Barclays said, adding that free cash flow could triple from last year’s €3 billion to around €9 billion in 2024.

“The cash flow profile at Airbus is now becoming more predictable and robust compared with that of Boeing,” said the bank.

It has calculated that when the two rival companies are stripped back to their commercial airplane divisions, current share prices imply Airbus is valued at a “striking” 45 percent discount to that of Boeing’s.


The discount is undeserved and doesn’t properly factor in Airbus’s share of the single-aisle jet market, said Barclays.

“We estimate the present value of the total narrow-body industry at $238 billion, which implies that a 50/50 split is worth 140 euros per share to Airbus — 20 percent above Airbus’ current share price.”

It added Airbus’s popular A321 jets alone should contribute €3.4 billion of free cash flow to the company over the next five years.