Dassault confident of 2023 target for Falcon deliveries
2023-08-10 - Scroll down for original article
Company: Dassault Aviation
Summary
Dassault Aviation is a major player in the business jet market, specializing in the super mid-size, large, and long-range categories. The company's flagship products include the Falcon 2000 and 8X, with new developments such as the Falcon 6X and 10X expected to drive future growth. Dassault aims to deliver 35 Falcon business jets in 2023, but its order backlog may not expand as much as it did in 2022.
Article Analysis
The article highlights Dassault Aviation's confidence in meeting its delivery target for 2023, despite a potential slowdown in order backlog expansion compared to the previous year. The company experienced a cooling market at the end of 2022 and the beginning of 2023 but has started to see signs of improvement. While the executive acknowledges that achieving the same figures as last year would be optimistic, he remains positive about the market's gradual recovery.
The sentiment in the article is generally positive towards Dassault Aviation, as it highlights the company's ability to adapt to supply chain constraints and attract new customers in the business jet market. The mention of new developments like the Falcon 6X and 10X also indicates a focus on innovation and future growth.
Market Reaction
Historically, Dassault Aviation's stock price has shown sensitivity to news related to its order backlog and delivery targets. Positive news regarding order backlog expansion and strong delivery figures have tended to drive the stock price higher, while any indications of a slowdown or missed targets have had a negative impact.
Investors closely monitor the company's ability to meet delivery targets, as it reflects the demand for its business jets and overall market conditions. The market reaction to this news will likely depend on the extent of the order backlog expansion in 2023 and the company's ability to deliver on its target of 35 Falcon business jets.
Investor Sentiment
The article does not provide specific information on investor sentiment following its publication. However, investors may view the positive outlook for the business jet market and Dassault Aviation's ability to adapt to supply chain constraints as favorable factors. The mention of new customers entering the market and the company's focus on innovation could also contribute to positive sentiment.
To assess investor sentiment more accurately, it would be necessary to analyze trading volume, options activity, and analyst opinions following the publication of the article.
Competitor Comparison
Dassault Aviation's major competitors in the business jet market include companies like Gulfstream Aerospace, Bombardier, and Embraer. The article does not provide information that directly impacts Dassault's competitive position compared to its competitors.
However, the mention of new developments like the Falcon 6X and 10X indicates Dassault's commitment to innovation and staying competitive in the market. The successful certification and launch of these new models could potentially strengthen the company's competitive position.
Risk Factors
Potential risks to Dassault Aviation's stock price include a slower-than-expected market recovery, increased competition from rivals, and supply chain disruptions. If the market fails to rebound as anticipated, it could impact the company's order backlog expansion and delivery targets. Additionally, any delays or issues with the certification and launch of new models could negatively affect investor sentiment.
The article does not provide any specific information that increases the risk factors for Dassault Aviation. However, investors should closely monitor market conditions, competitor actions, and the company's ability to meet its delivery targets.
Conclusion
Overall, the article suggests a positive outlook for Dassault Aviation, with signs of improvement in the business jet market and the company's ability to adapt to challenges. While the order backlog expansion may not match the previous year's figures, the gradual recovery and focus on innovation indicate potential opportunities for the company.
Investors should closely monitor Dassault Aviation's ability to meet its delivery targets, as this will be a key factor in determining the stock price's short-term performance. The successful certification and launch of new models like the Falcon 6X and 10X could drive long-term growth and strengthen the company's competitive position.
Disclaimer
This financial report is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a financial professional before making any investment decisions.
Original Article:
Source: Link
SAO PAULO, Aug 10 (Reuters) - Dassault Aviation (AM.PA) is confident it will be able to meet its target to deliver 35 Falcon business jets in 2023, but its order backlog is not likely to expand this year as much as it did in 2022, an executive said in an interview. Private aviation boomed during the COVID-19 pandemic as wealthy travelers sought to reduce exposure to the coronavirus, helping business jet makers post strong figures. Dassault added 64 Falcon orders to its backlog in 2022, up 25.5% from the year before. Since then, it saw signs of a cooling market, but things are starting to heat up again. "We noticed a little slowdown at the end of last year, still in place this year as the first half was not crazy on our side," Dassault's vice president of civil aircraft, Carlos Brana, told Reuters at Sao Paulo's LABACE airshow late Wednesday afternoon. "But now we see little turbulences - meaning, an improvement - compared to what we saw in the first few months," he said. "I'm not saying that we'll have the same figures as last year. I think that would be very optimistic, but we see the market coming back again. Slowly, but coming back." Dassault is a major player in the super mid-size, large and long-range categories of business jets, with products such as the Falcons 2000 and 8X that it showcased in Sao Paulo. Its newest developments include the Falcon 6X, which it hopes will be certified within weeks, and the 10X, a "game changer" for which it expects certification in 2025. Brana highlighted a wave of new customers in the business jet market as a result of the pandemic, saying that about 20% of Falcon buyers last year were first-time purchasers of a private aircraft. Dassault delivered 32 Falcon aircraft in 2022 and aims for 35 this year, as it works to overcome supply-chain issues affecting the sector in recent years. "We are doing our best with the supply chain constraints," Brana said. "We're still targeting the 35." Reporting by Gabriel Araujo Editing by Brad Haynes and Leslie Adler Our Standards: The Thomson Reuters Trust Principles.