Investing.com — Shares of Airbus (EPA:) rose on Thursday, boosted by rumors circulating about a potential deal with Etihad Airways and a bullish upgrade from analysts at JP Morgan.

At 7:23 a.m. (11:23 GMT), Airbus was trading up 3.4% at 140.58 euros.

As speculation about a large order from Etihad grew, the aerospace giant’s order book is expected to grow, fueling market optimism.

Continuing this dynamic, JP Morgan raised its price target for Airbus from 172 to 180 euros, “although we still see a downside risk to consensus aircraft delivery estimates, we believe this could be offset by cost reduction,” analysts said.

Despite a difficult year with deliveries of flat planes in the third quarter, Airbus has taken measures to preserve its profitability.

JP Morgan noted that Airbus achieved unexpected savings of 100-200 million euros in the third quarter of 2024, mainly thanks to its LEAD! program. initiative.

This initiative, although largely kept secret until recently, has been a key factor in maintaining stable profits despite external pressures such as unfavorable exchange rates and inflationary headwinds.

JP Morgan highlighted that while deliveries remain slightly below previous expectations, Airbus’ strong order book and production plans through 2030 provide a solid foundation for future earnings.

Analysts also mentioned that the deal with Etihad, if confirmed, could be a major factor in supporting Airbus’ long-term growth and competitiveness in the commercial aircraft sector.

Additionally, cost-cutting efforts in Airbus’ Defense and Space division, which include a planned cut of 2,500 jobs by mid-2026, were seen as a positive development.

JP Morgan believes that these efforts will not only offset short-term challenges, but will also provide long-term financial benefits, making the stock an attractive prospect for investors.