Airbus SE ADR
EADSY: PINX (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$66.40 | Kbmy | Fyrlbckln |
Airbus Is Set to Be the Dominant Planemaker of the 2020s
Business Strategy and Outlook
Airbus primarily generates revenue through manufacturing commercial aircraft. It benefits immensely from being in a duopoly with Boeing in the commercial aircraft manufacturing business for aircraft 130 seats and up; the companies act as a funnel through which all commercial aircraft demand must flow. This allows both companies to actively manage their order backlogs to reduce cyclicality, despite the intense cyclicality of the customer base.