Analyst Gabriele Gambarova from Intesa Sanpaolo maintained a Buy rating on Avio S.p.A. and increased the price target to €66.50 from €34.50.
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Gabriele Gambarova has given his Buy rating due to a combination of factors that highlight Avio S.p.A.’s strategic growth potential and financial prospects. The company’s decision to initiate a EUR 400 million capital increase to expand in the U.S. solid rocket motor niche is a significant move that enhances its visibility and attractiveness to American investors. This expansion is expected to de-risk Avio’s business model by diversifying its product and geographic mix, transitioning it from a primarily European space company to a more balanced entity with substantial exposure to both space and defense sectors.
Furthermore, Avio’s 2025-2035 plan projects robust growth, with a compound annual growth rate exceeding 10% in revenues and a high-teens CAGR in EBITDA, suggesting a promising financial trajectory. The SOTP valuation method, which accounts for the U.S. initiative, indicates a fair value of EUR 82, while the DCF model provides a more conservative fair value of EUR 51. By averaging these valuations, a new target price of EUR 66.5 is set, reinforcing the Buy rating as it reflects both the potential upside and the strategic initiatives undertaken by Avio.