Avio shines, brokers promote prospects on US consolidation

(Il Sole 24 Ore Radiocor) - Avio is running at Piazza Affari, as investors look at the indications that emerged from the interview in Il Sole 24 Ore with CEO Giulio Ranzo on the renewal of the board of directors and the consolidation strategy in the US. The defence stock is currently the best performer on Milan's main list, close to end-January levels.

The CEO's statements provide some details on the nominations for the next board. In view of the shareholders' meeting next 28 April, Avio's management has proposed 'a list, supported by us as shareholders (with the management investment vehicles InOrbit and Rbc) and with the support of Leonardo through a shareholder agreement that we have made known to the market,' says Ranzo. The hope is that this move will also be appreciated 'by the other shareholders who have supported us traditionally and also recently,' adds the CEO, 'such as the American management company Wcm Investment Management, the Italia fund Plenisfer participated by Generali, but also Anthilia and Delfin'. The objective is in fact 'to guarantee managerial continuity, after three years of strong growth, in order to bring Avio to a new and further expansion, particularly in the USA'.

And it is precisely this point, according to Banca Akros analysts, that attracts the market's attention. In the interview, in fact, Ranzo 'confirmed that the new US plant in Virginia will be opened by the end of 2028', the experts explained. He added that the doubling of production capacity - which should increase from the initial 700 tonnes to 1,400 tonnes - 'will depend on customer volumes'. However, this appears 'more and more as a potential scenario' and leads analysts to confirm the 'Buy' rating on the stock with a target price of €40. In fact, Avio's management is ready to consider a further capital increase of 10% (after the recent completion of the 400 million capital increase) in 2026, in order to raise the necessary resources to support the strengthening plan in the US. Moreover, according to Ranzo's interview, it is already finalising 'a series of agreements with the US Army, Raytheon, and Lockheed Martin that establish preferential access to part of the plant's production capacity for some of the world's most important defence players'. This may be a first step towards Avio's 'progressive expansion of business in the USA' and towards the objective of 'increasing visibility and credibility with respect to the Pentagon', thanks also to the identification of 'long-term partners who know the market'.