The head of Dassault Aviation raised questions over a troubled Franco-German-Spanish fighter project on Tuesday, saying its future depended in part on whether Germany was prepared to re-examine its reliance on U.S. arms imports.
Dassault Aviation remains undervalued versus peers, with a buy rating maintained and 14–24% upside potential based on 2026–2027 price targets. DUAVF's Rafale fighter jet pipeline includes potential orders from India, Ukraine, and Switzerland but faces risks from competitive pricing and uncertain defense budgets. Business jet growth is anchored by the Falcon 10X's 2027 entry and expanded US MRO footprint, supporting aftermarket revenue opportunities.
Reliance Infrastructure said its unit would sell a 2% stake in its Indian joint venture to its partner, Dassault Aviation , making the French fighter plane maker a majority owner of the firm with a 51% stake.
Outlook is good for 2025 on further production rate increases on the back of a strong sector outlook. Beyond that, the Falcon segment should improve its economics, particularly starting in 2027 with the 10x release. The only headwind is the European rate situation dragging on financial income, but that will likely be more than offset by Thales growth alone.
I maintain my buy rating for Dassault Aviation with a $376.89 price target, reflecting a 9% upside potential, despite the stock trading above its median EV/EBITDA multiple. Dassault Aviation's business revolves around Rafale fighter jets and Falcon business jets, with strong growth in defense exports and a robust order backlog. The company's 2024 earnings showed significant growth, with a 32% increase in order intake and a 50% rise in operating income, although net income growth was modest.
At the Business Aviation Asia Forum & Expo (BAAFEX) in Singapore, CNBC took a closer look inside the $70 million Falcon 8X, an ultra-long-range business jet by Dassault Aviation. ➡️ The jet is capable of flying 6,450 nautical miles - from Beijing to NYC or Paris to Singapore.
French warplane maker Dassault Aviation's CEO said the company was monitoring government budget discussions and was ready to seize opportunities presented by Europe's need to rearm given the defence shakeup caused by the U.S. president.
French planemaker Dassault Aviation reported a rise in its full-year sales on Wednesday, as geopolitical tensions fuel defence spending.
Carlos Brana, Executive VP for Civil Aircraft at Dassault Aviation, talks about the company's operations amid supply chain issues and strengthening business jet demand from new markets like Southeast Asia.
Despite already increased global defense spending, the defense industry is expected to be fuelled by additional investments, especially in Europe. A growing order book and increasing profit margins make room for short- and medium-term upside potential. With the re-election of Donald Trump as president of the US in 2024, European defense contractors can expect priority when governments start placing new orders.
Dassault Aviation's stock underperformed, rising only 5% versus the S&P 500's 6.7%, due to lingering effects from a weak end of 2023 and supply chain issues. Despite a strong order book and stable margins, aerospace and defense stocks, including Dassault Aviation, didn't gain significant value until mid-2024. The stock is slightly overvalued for 2024, but with zero bank debt and strong EBITDA growth prospects, it remains a buy with an $214.50 price target.
Dassault Aviation société anonyme is almost 0 EV, but that's to do with governance and capital allocation quirks. The improving supply chain situation, current and latent growth all support a buy thesis, and the relatively low P/E multiples help. Growth prospects are likely with large Falcon and Rafale backlogs supported by strategic and growing markets, and Thales income will improve on deleveraging.