Dassault Aviation: Oddo cuts target price
(CercleFinance.com) - Dassault Aviation has reported figures for FY 2019 that, on the one hand, include military results that are in line with Oddo's expectations, thanks to the delivery of 26 Rafale against 12 in 2018.
However, analysts underline a big disappointment in terms of results for civilian aircraft, noting only 40 Falcons (versus 41 in 2018) were delivered, against its expectation (and official guidance) of 45.
This publication has led the broker to adopt a more cautious stance regarding Falcon deliveries before the commissioning of the 6X, and the new aircraft (NX?) can begin a more favourable product cycle, Oddo says.
Analysts are now anticipate the delivery of 42 units in 2020, 46 in 2021 and a steady rise to 49 in 2022, driven by the first deliveries of 6X, with the group reaching the threshold of 50 in 2023.
This adjustment has led the broker to cut its EPS estimates by 6% in 2020, 7.6% in 2021 and 10% in 2022.
This adjustment leads it to cut its target price for the share from 1,720 euros to 1,550 euros (new upside of 37%), although the broker confirms its buy rating on the share.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
However, analysts underline a big disappointment in terms of results for civilian aircraft, noting only 40 Falcons (versus 41 in 2018) were delivered, against its expectation (and official guidance) of 45.
This publication has led the broker to adopt a more cautious stance regarding Falcon deliveries before the commissioning of the 6X, and the new aircraft (NX?) can begin a more favourable product cycle, Oddo says.
Analysts are now anticipate the delivery of 42 units in 2020, 46 in 2021 and a steady rise to 49 in 2022, driven by the first deliveries of 6X, with the group reaching the threshold of 50 in 2023.
This adjustment has led the broker to cut its EPS estimates by 6% in 2020, 7.6% in 2021 and 10% in 2022.
This adjustment leads it to cut its target price for the share from 1,720 euros to 1,550 euros (new upside of 37%), although the broker confirms its buy rating on the share.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.