Morgan Stanley analyst Ross Law has maintained their neutral stance on 0IAX stock, giving a Hold rating on March 3.
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Ross Law has given his Hold rating due to a combination of factors impacting Dassault Aviation’s financial outlook. The company’s FY24 results showed strong performance, with revenues and EBIT exceeding expectations, largely driven by robust Defence Export sales and reduced R&D expenses. However, despite these positive results, the guidance for FY25 presents a mixed picture.
The anticipated deliveries for Rafale aircraft fall short of consensus expectations, and while Falcon deliveries are slightly ahead, the overall revenue forecast is 10% below consensus estimates. This discrepancy suggests potential downside risks, particularly in the Falcon division, overshadowing the company’s solid execution in the Defence sector. The stock’s significant rise year-to-date, influenced by the broader revaluation of the European defense industry, also contributes to the cautious stance, leading to the Hold recommendation.
In another report released on March 3, J.P. Morgan also maintained a Hold rating on the stock with a €280.00 price target.