Equita ups Avio to 'buy' after sell-off, better defence visibility
BUZZ-Equita ups Avio to 'buy' after sell-off, better defence visibility ** Equita upgrades its rating for Avio AVI.MI to "buy" from "hold" after the recent defence sector selloff, as visibility for the rocket maker remains intact
** However, it cuts its PT by 11% to €40 due to sector de-rating
** The broker says Avio's shares fell by 34% since May 28, but it lists a solid hard backlog of over €2 billion ($2.27 billion) and improved visibility on its Defence segment among the reasons to move to "buy"
** In regards to Space business, launches are expected to double by 2030, while Equita estimates that Amazon's recent order for six Ariane 6 flights could net Avio around €100 million
** Guidance for 2026 remains conservative, but the broker says this takes a back seat compared to medium-term ambitions for US expansion, along with potential for M&A after Advent acquired a minority stake in the group
** Shares are up 2.3% on Tuesday, compared to Italy's blue-chip index gaining 0.5%
** Out of 6 analyst that currently monitor Avio, four maintain a "buy" rating and two opt for "hold" - LSEG data
($1 = 0.8814 euros)
($1 = 0.8823 euros)
(Enrico Sciacovelli)