Defence and aerospace sectors are booming in Europe; Avio is also boosted by a 35 million order from France

(Il Sole 24 Ore Radiocor) - Avio is bouncing back after a weak run in recent sessions, buoyed by a new €35 million order received from the French firm MBDA. The shares have recently returned to the spotlight alongside the entire space sector, ahead of SpaceX’s Wall Street debut, Elon Musk’s company already valued at over 2,000 billion dollars. From 11 May to the end of last month, the share price surged by more than 43 per cent, buoyed by buying from thematic funds specialising in the space sector. Since the start of June, however, Avio’s share price has gradually fallen, dropping by around 22 per cent (at the close on 18 June) from its recent highs. The share price is once again being buoyed by the news that, as part of the existing framework contract with MBDA in France, Avio has signed a production order for the supply of solid-propellant engines and related aerodynamic components for the Aster 30 defence system, worth over 35 million euros. The order will be fulfilled over a four-year period. “The signing of this new order confirms the positive momentum for Avio’s defence propulsion sector and further strengthens the company’s collaboration with the MBDA Group, supporting European defence in response to the growing demand for the SAMP/T NG missile defence system”, the company emphasised yesterday in a statement.

Analysts at Banca Akros point out that the announced order must be viewed in the context of a defence division order book worth €650 million at the end of the first quarter of 2026. The contract therefore represents around 5% of the total. “However, given the timing, we would not be surprised if the order were linked to the Samp/T contract between Denmark and France, which was not included in the forecasts and which, as such, could represent an initial batch, with further orders to follow,” the experts added, confirming their “Buy” recommendation on the share and a target price of 40 euros. Furthermore, according to Banca Akros, the Samp/T system’s export potential remains significant, with a high probability that further similar orders will follow. Intermonte also maintains a positive outlook on the share, with an “Outperform” rating and a target price of 42 euros. Analysts have welcomed the order from France and believe that European demand for anti-missile systems is set to grow in the coming years. Avio is therefore benefiting both from the focus on the space sector – fuelled by the anticipated launch of SpaceX and its ‘stellar’ valuations – and from the particularly favourable climate for the defence sector, which is in all likelihood set to remain one of the pillars of the European economy. It is no coincidence that other shares in the sector are also on the rise, from Italy’s Leonardo (+3%) to Germany’s Rheinmetall (+2.4%) and France’s Thales (+1.6%).