Investing.com -- Airbus shares climbed 2.1% on Thursday after Citi upgraded the European aerospace group to Buy from Neutral and raised its target price to €217 from €208. The analysts cited improving prospects across multiple business areas, including long-term aircraft production growth, a strengthening defense segment, and favorable currency trends.

While delivery ramp-ups have been delayed, Citi analyst Charles Armitage maintains that Airbus's long-term production trajectory remains intact, with the company still expected to reach 75 narrow-body aircraft per month. The defense outlook is improving as production increases for the Eurofighter Typhoon and military helicopter demand rises amid European rearmament efforts. A stronger U.S. dollar versus the euro could add €8-10 per share to valuation.

Armitage trimmed near-term operating profit forecasts by 10-11% due to slower deliveries but raised longer-term projections as production catches up and foreign exchange trends remain favorable. He argues that geopolitical tensions may not significantly impact air travel demand, noting that higher oil prices actually encourage airlines to replace older aircraft since modern jets save 15-20% in fuel costs.