Airbus SE share price: Shares of Airbus Group SE jumped 4% in opening deals on Wednesday, June 4, extending their rally to the third straight session amid reports that Chinese airlines are considering placing a big order for Airbus SE aircraft. With today’s rise, the stock gained over 6% in the last three sessions.
According to a Bloomberg report, Chinese airlines are considering ordering up to 300 narrowbody and widebody Airbus SE aircraft as soon as next month when European leaders visit Beijing. The order could rise to as many as 500 aircraft, one of the people told Bloomberg.
Reuters first reported in April that China has been in on-and-off negotiations to place an order for up to 500 Airbus jets.
French President Emmanuel Macron and Chancellor Friedrich Merz of Germany are among leaders who may visit Beijing in July to mark 50 years of diplomatic relations between China and the European Union. Their countries are the two biggest owners of Airbus.
Airbus SE share price trend
Airbus Group SE shares opened at €169.92, higher than their last closing price of €166.44. They soon extended gains to the day’s high of €173.26, recording an upside of 4%. Today’s rally has brought Airbus SE stock close to its 52-week high of €177.3 apiece.
“Airbus SE’s share price has skyrocketed after reports of big orders from China for jets. This has triggered fresh buying in the stock,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.
However, he added that neither side has an official update, so fresh investors are advised to wait for an official statement. The European Exchange is expected to seek clarification on this significant upside in Airbus SE’s share price in the last three straight sessions, Gorakshkar said.
Airbus SE stock: Can it rally more?
Anshul Jain, Head of Research at Lakshmishree Investments, said Airbus is on the verge of a bullish breakout from a 61-week-long cup and handle pattern, with the breakout pivot placed at €167.
“The base has witnessed strong institutional accumulation, as reflected by multiple high-volume candles during the formation. A breakout above €167 is likely to sustain and trigger fresh bullish momentum. Post-breakout, the stock is expected to head towards €195, offering a promising upside for both positional and momentum traders,” added Jain.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
