Airbus presents a business prospect of 17% opening.
The shares of Airbus are experiencing a correction, having peaked at 172.82 Euro on March 27, 2024, and dropping to 148.00 Euro currently. Lowered May delivery figures have caused this downturn and have fallen short of the annual targets.
Despite these struggles, financial experts from DZ Bank are still maintaining their buy recommendations for the Airbus stock with a target price of 192 Euro.
The Investment Prospect
Following the recent price drop and the generally positive analyst comments, there might be a favorable moment for investing in the undervalued Airbus stock. Risk-averse investors might prefer purchasing bonus certificates limited by a cap on the Airbus stock as an alternative. These certificates provide investors with the potential for high returns even if the stock price remains stagnant or decreases.
Besides dividend payments, purchasing the Airbus stock directly will only generate positive returns if the stock price rises. With bonus certificates, both with and without a cap, investors can earn double-digit percentage returns in annualized terms not just from a rising stock price but also from a stagnant or falling price.
The Mechanics
If the Airbus stock stays above or doesn't fall below the 108 Euro barrier by the certificate evaluation date of September 26, 2025, the bonus certificate with a cap will be redeemed, with the maximum payout amount of 190 Euro.
Key Details
The Société Générale bonus certificate (ISIN: DE000SW9M3R5) with a cap on the Airbus stock has a bonus level and a cap at 190 Euro. The cap defines the maximum payout of the certificate. The barrier, which is active until the evaluation date on September 19, 2025, is currently set at 108 Euro. Investors can currently purchase the certificate for 162.05 Euro, while the Airbus stock is trading at 148.00 Euro.
The Opportunities
Since the certificate is priced at 162.05 Euro currently, it presents a potential gross return of 17.25% (equivalent to 14% annually) until September 2025, as long as the Airbus stock price does not fall below or touch the 108 Euro barrier or the purchase price of the certificate, 162.05 Euro, by the evaluation date.
The Risks
If the Airbus stock touches or falls below the 108 Euro barrier and the stock trading price stays below the cap price of 190 Euro on the evaluation date, investors will receive one Airbus share for each certificate. If this Airbus share is sold for less than 162.05 Euro, the investment will result in a capital loss.
*This post does not represent any recommendation to buy or sell Airbus stocks or investment products based on Airbus stocks. No responsibility is assumed for the accuracy of the provided data.
Read also:
- An astute investor seeking advice on potentially undervalued stocks might consider consulting with an experienced financial advisor, who could suggest considering Airbus shares due to their current correction and positive analyst predictions, such as those from DZ Bank.
- Consumers interested in diversifying their investment portfolio could explore financial investment opportunities in securities, including Airbus Group shares, as suggested by their financial advisor, particularly with the current low stock price and the potential for future price increase based on expert recommendations.
- As part of their investment strategy, investors may decide to purchase bonus certificates, like the Société Générale bonus certificate with a cap on the Airbus stock, in order to generate returns from financial investments, even if the underlying stock, such as Airbus shares, fails to demonstrate significant price growth.
