Dassault Aviation: Rafale Upside Makes This A Strong Buy

Dhierin Bechai Investing Group Leader Follow Summary Dassault Aviation is upgraded from buy to strong buy, targeting 25% upside to $403.71 based on robust fundamentals. First-half 2026 saw 46% sales growth, 83% adjusted operating income growth, and margin expansion, with a €45.4 billion backlog providing multi-year visibility. Risks include a weak 0.69x book-to-bill, Falcon 10X delays to 2029, and uncertainty after the FCAS/NGF halt, but Rafale F5 and new fighter initiatives offset these. Balance sheet strength, conservative capital returns, and improving Falcon demand support the investment thesis despite cash flow volatility from advance payments. Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » Jozsef Soos/iStock Editorial via Getty Images Dassault Aviation ( DUAVF ) stock has declined around 4% since my previous report focusing the failed attempt of Germany and France to jointly develop a next-generation fighter jet. While this does open up This article was written by Dhierin Bechai 24.73K Followers Follow Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.