Is Jefferies' Backing of Avio’s US Push Reframing the Long-Term Thesis for (BIT:AVIO)?

• Jefferies recently initiated coverage on Italy’s Avio with a buy rating, pointing to the company’s expansion into the US market and its growing role in aerospace and defense.
• This new coverage frames Avio as an emerging international contender in space launcher development, potentially broadening its access to customers and capital.
• Next, we’ll examine how Jefferies’ emphasis on Avio’s US expansion could reshape the company’s existing investment narrative and long-term positioning.

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Avio Investment Narrative Recap

To own Avio, you need to believe it can turn its role in European launchers and solid rocket motors into sustained, profitable growth, while managing execution and contract risks. Jefferies’ new coverage, focused on Avio’s US expansion, reinforces the near term catalyst around growing defense propulsion orders, but does not materially change the key risk that delays or overruns in programs like Vega C and Vega E could pressure margins.

The most relevant recent development here is Avio’s November 2025 term sheet with Lockheed Martin and MOU with Raytheon to establish an SRM facility in the US, backed by a purchase order of up to US$26 million. This ties directly into the US expansion theme highlighted by Jefferies and could support the company’s push to become a merchant supplier of defense propulsion, while amplifying the importance of flawless execution on new US contracts and facilities.

Yet for investors, the concentration in large, long cycle launch and defense programs means you still need to be very aware of...

Read the full narrative on Avio (it's free!)

Avio's narrative projects €563.2 million revenue and €20.8 million earnings by 2028. This requires 5.4% yearly revenue growth and a €14.7 million earnings increase from €6.1 million today.

Uncover how Avio's forecasts yield a €44.38 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span roughly €0.00 to €66.50 per share, showing how far apart individual views can be. When you set that against the execution risk around Vega C and Vega E, it underlines why it can be useful to compare several independent perspectives before forming a view on Avio.

Explore 4 other fair value estimates on Avio - why the stock might be worth as much as 87% more than the current price!

Build Your Own Avio Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Avio research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Avio research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Avio's overall financial health at a glance.

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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.

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