Analyst Carlo Maritano of Intermonte maintained a Hold rating on Avio S.p.A., with a price target of €43.00.
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Carlo Maritano has given his Hold rating due to a combination of factors that suggest both potential and caution for Avio S.p.A. The company is embarking on a significant capital increase of €400 million, which is part of a larger plan to expand its capabilities in space launch and defense propulsion. This initiative aims to alleviate production bottlenecks and strengthen Avio’s industrial presence across the Atlantic, positioning the company to benefit from increased defense budgets and supply chain constraints.
However, despite these strategic moves, Maritano notes that much of this potential growth seems to be already reflected in the current stock price. The introduction of a sum-of-the-parts (SOTP) valuation approach, alongside the traditional discounted cash flow (DCF) analysis, indicates a higher valuation but also underscores the sensitivity to market trends. While there are upside risks such as stronger-than-expected demand, there are also significant downside risks, including potential launch failures that could delay operational scaling and synergy realization. Thus, the Hold rating reflects a balanced view of the opportunities and risks associated with Avio’s future prospects.
According to TipRanks, Maritano is a 4-star analyst with an average return of 30.2% and a 92.86% success rate.