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VORTEX-S spaceplane alliance puts Dassault Aviation société anonyme (ENXTPA:AM) in the ESA spotlight
Dassault Aviation société anonyme (ENXTPA:AM) is in focus after announcing a new alliance with OHB to propose the VORTEX-S multipurpose spaceplane project to the European Space Agency.
The project would see Dassault Aviation act as prime architect and integrator of the spaceplane, with OHB leading the service module, as both companies work with additional European partners on future space mobility concepts.
See our latest analysis for Dassault Aviation société anonyme.
The VORTEX S announcement comes as the stock rebounds in the short term, with a 1 day share price return of 1.89% and 7 day share price return of 5.81%. However, the 90 day share price return is down 15.78% and the 1 year total shareholder return is down 2.82%, set against a much stronger 3 year total shareholder return of 85.95% and 5 year total shareholder return of 206.77%.
If this kind of space focused story has your attention, it can be a good moment to look wider and check out 35 robotics and automation stocks
With shares still below analyst price targets and an intrinsic value estimate implying a sizeable discount, is Dassault Aviation société anonyme offering mispriced exposure to aerospace and space growth, or is the market already correctly pricing in the VORTEX S opportunity?
Most Popular Narrative: 18.4% Undervalued
With Dassault Aviation société anonyme last closing at €291.40 against a narrative fair value of €357.12, the current pricing gap is hard to ignore.
The robust international demand for the Rafale highlighted by major new contracts with India (including the first Rafale Marine export order) and the UAE, ongoing negotiations for additional aircraft with Indonesia, and active Make in India transfer initiatives provides exceptional multi year revenue visibility and demonstrates Dassault's ability to capitalize on the trend toward higher global defense spending, particularly among NATO and partner nations. This growing backlog should drive forward revenue growth and enhance long term earnings stability.
Want to see how higher defense demand, premium business jets and richer margins are woven together into one valuation story? The forecast hinges on a specific blend of revenue growth, profit expansion and future earnings multiples that is anything but random.
Result: Fair Value of €357.12 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this hinges on aircraft deliveries staying on track and trade tensions or tariffs not cutting into Dassault Aviation société anonyme’s key export markets.
Find out about the key risks to this Dassault Aviation société anonyme narrative.
Next Steps
Given the mix of optimism and concern in this story, it makes sense to move quickly and check the underlying data for yourself. To see both sides of the argument in one place and decide where you stand, take a closer look at the 5 key rewards and 1 important warning sign.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AM.PA .
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