On Wednesday, Berenberg raised its price target for Dassault Aviation from €185 to €190, while reiterating its 'hold' recommendation on the stock.

In a note published this morning, the analyst said he remained positive about the prospects for the Rafale, which in his view remains the heart of the aircraft manufacturer's investment case.

Berenberg points to new commercial opportunities for the fighter, starting with Colombia and India, not to mention a new firm order from Indonesia.

On the other hand, he sees a number of risks surrounding the business aircraft business, whose normalization against a backdrop of market slowdown could weigh on the share price in the short term.

The intermediary points out that the Dassault share has gained 16% since the start of the year, compared with a 23% gain for the European defense sector, posting an Enterprise Value/Ebitda ratio of 8.3x.

Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.