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Is Airbus (ENXTPA:AIR) A Bargain Following A321XLR Route Wins And A220 Expansion?

Simply Wall St · 1d ago

Airbus (ENXTPA:AIR) is back in focus after airlines highlighted fresh plans for its A321XLR and A220 programs, including new long range routes and expanded wing production capacity in Belfast.

At a share price of €205.85, Airbus has had a mixed few months, with the 90 day share price return of 15.84% pointing to building momentum even as shorter term moves have been softer. The 1 year total shareholder return of 17.61% and 5 year total shareholder return of 90.15% show a much stronger longer run picture that recent A321XLR route announcements and the A220 wing expansion help to contextualise as the company invests to meet aircraft demand and address capacity needs.

Scan other aircraft manufacturers that also show capacity to scale with demand by checking our hand picked 275 high quality undervalued stocks alongside Airbus's latest moves.

After that run up to around €205, and with Airbus investing heavily in A321XLR and A220 capacity, the tension is clear. Do you wait for a cheaper entry or treat today’s valuation as good enough?

Most Popular Narrative: 10.9% Undervalued

On the latest numbers, the most followed Airbus narrative pegs fair value at €230.96 compared with the recent €205.85 share price, which puts analyst assumptions in sharp focus.

Sustained growth in global air travel, particularly from emerging markets and rising middle-class populations, continues to drive robust order intake and long-term backlog growth for Airbus, supporting higher potential future revenues and operational leverage. Airline fleet replacement cycles are accelerating due to increased prioritization of newer, fuel-efficient, and lower-emission aircraft. This supports higher demand for the A320neo family and other next-generation models, with implications for both revenue and margins as product mix shifts.

Read the complete narrative.

Want to understand why this narrative supports a higher Airbus fair value than today’s price? It centers on revenue expansion, firmer margins and a richer future earnings multiple. Curious which specific growth and profitability paths are built into those models? The full story sits inside the detailed projections.

Result: Fair Value of €230.96 (UNDERVALUED)

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

However, Airbus investors still need to weigh ongoing supply chain strains and elevated inventories, as these could disrupt delivery plans and put future margins under pressure.

Find out about the key risks to this Airbus narrative.

Next Steps

With the story so far leaning positive on Airbus, it makes sense to check the numbers yourself and move quickly if you see a fit. To see exactly what investors are optimistic about, review the 4 key rewards

Looking for more investment ideas beyond Airbus?

Round out your watchlist with a few more targeted ideas before you move on. Skipping this step could mean missing companies that fit your style even better.

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.