Dassault Aviation: Oddo remains neutral before results

(CercleFinance.com) - Oddo today confirms its Neutral rating on the Dassault Aviation stock, maintaining its target price at 1800 euros.

According to the analysts, the stock only has limited upside potential.

With the group expected to generate 4.7 billion euros in revenue in 2018 at a cyclical low (6 billion euros in 2020e) and 2018e EBIT of 371 million euros (vs. 552 million euros in 2020e), its multiples do not appear to be excessive (EV/Sales of 88% and EV/EBIT of 10.5x in 2020e), Oddo says.

Analysts believe that for its defense division, everything remains in good shape - whether in terms of orders (many prospects for the Rafale, including India, Belgium, Switzerland, Malaysia, the UAE, etc.), deliveries (from 9 in 2017 to 28 in 2020), or profitability.

Oddo expects H1 revenues of 1,980 million euros (vs. 2,050 million euros in H1 2017 and 1,925 million euros expected by the consensus), with EBIT of 111 million euros (vs. 123 million euros and 123 million euros), and net profit of 167 million euros (vs. 199 million euros and 150 million euros).



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