Avio S.p.A.: Strengthened Balance Sheet and Expanding Order Book Support Buy Rating and Above-Guidance Growth Outlook

Jefferies analyst Chloe Lemarie maintained a Buy rating on Avio S.p.A. today and set a price target of €39.50.

Chloe Lemarie has given his Buy rating due to a combination of factors tied to Avio S.p.A.’s upgraded outlook and solid commercial traction. The company has raised its 2025 guidance, indicating a meaningfully larger order book and higher revenue expectations than previously communicated, supported by robust booking activity in the final quarter. This acceleration in orders is also reflected in a very strong net cash position, which materially enhances balance sheet strength and financial flexibility. At the same time, management has maintained its profitability and earnings targets, suggesting confidence that growth can be pursued without compromising underlying margins.

Chloe Lemarie’s assessment also reflects the view that Avio is entering a sustained expansion phase across both space and defense propulsion markets, with current performance likely to support a stronger revenue trajectory over the medium term than the company’s own guidance implies. Jefferies’ internal forecasts already incorporate a modest beat versus management’s revenue range, underscoring the analyst’s conviction in the growth profile. While the lack of an immediate upward revision to earnings guidance raises questions about timing of margin recognition and potential upfront costs on long-term contracts, these factors are interpreted as temporary and not detracting from the structural growth story. Overall, the combination of an enlarged backlog, accelerating top line, and a fortified cash position underpins Lemarie’s positive stance on the shares.

In another report released today, TipRanks – Google also upgraded the stock to a Buy with a €36.00 price target.

Based on the recent corporate insider activity of 12 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of 0R9S in relation to earlier this year.