Avio S.p.A. Hold Rating: Strong Performance and Future Potential Amid Slightly Lower 2025 Guidance

Avio S.p.A. (0R9S – Research Report), the Industrials sector company, was revisited by a Wall Street analyst on March 17. Analyst Carlo Maritano from Intermonte downgraded the rating on the stock to a Hold and gave it a €21.00 price target.

Carlo Maritano’s rating is based on a combination of factors that reflect both the current achievements and future potential of Avio S.p.A. The company has demonstrated strong performance with its order book reaching a record high, exceeding expectations, and showing significant growth in its tactical propulsion business. The financial results for 2024 were largely in line with forecasts, with adjusted EBITDA meeting estimates and a net cash position significantly above expectations due to advance payments on recent orders.
However, the guidance for 2025 is slightly below previous estimates, with expected net revenues and adjusted EBITDA not meeting earlier projections. Despite this, the long-term outlook remains promising, with potential growth in the defense sector and plans for increased production capacity, including a possible new plant in the US. The current valuation of Avio’s stock appears to adequately reflect its short to medium-term prospects, leading to a Hold rating as the market has already priced in the recent positive developments. The rating could be revised if new opportunities arise that could significantly impact Avio’s financial performance.

0R9S’s price has also changed dramatically for the past six months – from EUR11.840 to EUR19.280, which is a 62.84% increase.