(Finance) – Intesa Sanpaolo has reduced to 9.1 euros per share (from the previous 9.5 euros) the target price on Aviationa company listed on Euronext STAR Milan and active in the creation and development of space launchers and propulsion systems, confirming the recommendation “Hold” on the title.
Analysts write that i revenues of the first half of 2023 were slightly better than expected and showed growth of 17.7% year-on-year, driven by increased activity in the tactical propulsion business and development activity for PNRR-related projects, which more than offset lower production and development related to the Ariane program (Ariane 5 is being phased out, while Ariane 6 has had some delays). The EBITDA margin was 30 basis points higher than expected and showed an increase of 260 basis points year-on-year, thanks to better fixed cost absorption, lower gas costs and favorable sales mix.
The broker reminds us that they are expected in the next few days two important events: the recommendations of the Independent Inquiry Board and the launch of Vega VV23.
“The outlook for the sector is positive and the group’s order book bodes well for next year’s growth in revenues and profitability – we read in the research – The stock has been penalized by the delays of the Ariane 6 program and the uncertainty about costs and times for Vega C to return to flight: higher visibility on these issues and more stable gas prices however, they could help stimulate a renewed interest in the title“.