Dassault Aviation: Credit Suisse adjusts target price
(CercleFinance.com) - Credit Suisse confirms its Outperform rating on the share, while shaving a fraction off its target price to 1,275 euros (vs.
1,300 euros - current price: 752 euros, down nearly 4%).
"No material change to 2020e forecasts; TP slightly down to EUR1,275: We cut the number of Falcon deliveries in 2020e to 30 (in line with guidance) vs 35 previously. This is offset by the transfer of 2 Rafale fighter aircraft from 2021e to 2020e, as there do not appear to be delays on the deliveries," the broker says.
"We slightly increase R&D in 2020e to EUR590m (vs EUR575m), leading us to keep operating income almost unchanged for that year. A material cut in 2021e earnings driven by higher R&D expectations".
"We also underestimated the pace of development of the new Falcon NX (characteristics and timing still undisclosed), which should boost R&D to a peak in 2021e. This leads to a material increase to our R&D forecast that year, at EUR685m (EUR530m previously)," Crédit Suisse adds.
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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.
1,300 euros - current price: 752 euros, down nearly 4%).
"No material change to 2020e forecasts; TP slightly down to EUR1,275: We cut the number of Falcon deliveries in 2020e to 30 (in line with guidance) vs 35 previously. This is offset by the transfer of 2 Rafale fighter aircraft from 2021e to 2020e, as there do not appear to be delays on the deliveries," the broker says.
"We slightly increase R&D in 2020e to EUR590m (vs EUR575m), leading us to keep operating income almost unchanged for that year. A material cut in 2021e earnings driven by higher R&D expectations".
"We also underestimated the pace of development of the new Falcon NX (characteristics and timing still undisclosed), which should boost R&D to a peak in 2021e. This leads to a material increase to our R&D forecast that year, at EUR685m (EUR530m previously)," Crédit Suisse adds.
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.