LONDON (ShareCast) - Barclays (LSE: BARC.L - news) has reiterated an 'overweight' rating for European airspace and defence group EADS (Euronext: EAD.NX - news) with a price target of 32 euros.
"The shareholder restructuring between the French and German governments we feel is close, and the positive impacts should not be underestimated," Barclays wrote in a research note.
Analysts at the UK bank also pointed to the possibility of a share buy-back plan and cited other positive factors such as the possibility of a dividend increase and the profitability of the A380 programme with 30 deliveries per year.
They believe that EADS is attractive at current market prices, pointing to the erosion of market confidence. The worst has passed, which means that investors could look at the stock again, they suggest.
Barclays added that management's ambitions for the medium term appear to have become real objectives.
MJ
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