Avio S.p.A.: Strategic Positioning and Growth Potential in European Space and Defense Sectors

Intesa Sanpaolo analyst Bruno Permutti maintained a Buy rating on Avio S.p.A. (0R9S – Research Report) yesterday and set a price target of €22.00.

Bruno Permutti has given his Buy rating due to a combination of factors highlighting Avio S.p.A.’s strategic positioning and growth potential. The company is uniquely positioned within the European space and defense sectors, benefiting from the resurgence in European space launches and the anticipated increase in defense spending, particularly in air defense. This dual advantage is expected to drive significant growth, as reflected in the improved earnings per share estimates for 2025-2027, which have been raised by approximately 29%.
Furthermore, Avio’s involvement in key European space programs, Vega and Ariane, positions it well for recovery as these programs overcome past challenges and increase their launch frequencies. Additionally, Avio’s role in supplying solid rocket motors for tactical missiles aligns with NATO’s increased defense spending, offering further growth opportunities. The company’s substantial order backlog and projected earnings growth significantly above the industry average underscore the potential for material upside, justifying the raised target price and Buy recommendation.

According to TipRanks, Permutti is ranked #4130 out of 9595 analysts.