Dassault Aviation : The trend should regain control

01/24/2022 | 06:53am EDT

Nicolas Chéron

long trade Target price hit

Entry price : 102.2€ | Target : 114.6€ | Stop-loss : 97.8€ | Potential : 12.13%

The timing appears opportune to go long in shares of Dassault Aviation as we anticipate another pick-up in the underlying trend. Investors have an opportunity to buy the stock and target the € 114.6.

Summary

• The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
• Overall, and from a short-term perspective, the company presents an interesting fundamental situation.

Strengths

• Thanks to a sound financial situation, the firm has significant leeway for investment.
• The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
• Analysts covering this company mostly recommend stock overweighting or purchase.
• The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
• Over the past twelve months, analysts' opinions have been strongly revised upwards.
• Historically, the company has been releasing figures that are above expectations.

Weaknesses

• As estimated by analysts, this group is among those businesses with the lowest growth prospects.
• Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
• The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.

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