On Monday, Stifel raised its price target on Dassault Aviation shares, which it still considers 'undervalued' despite its recent stock market outperformance.

In a research note, the financial intermediary points out that the aircraft manufacturer's shares have 'clearly outperformed' mid-cap stocks over the past nine months, gaining over 20%.

The analyst attributes this feat to the aerospace group's solid results and fundamentals, but above all to the Rafale's "exceptional" development prospects, against a backdrop of tensions in Ukraine and Taiwan.

The order book could approach a level representing eight years of activity by the end of the year, a factor which has not yet been taken into account in the share price", he points out.

According to Stifel, the market has also failed to take into account the company's 25% stake in Thales, estimated at some 7.1 billion euros, and a net cash position that should reach 12.4 billion euros by the end of 2023.

The professional, who maintains his buy recommendation on the share, consequently raises his target price on the stock from 185 to 240 euros.

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