BUZZ-Avio expands solid rocket engine production capacity following deal with Lockheed Martin

October 14 - ** Shares of Italian company Avio AVI.MI rose by about 5% after the rocket manufacturer signed a strategic cooperation agreement with Lockheed Martin LMT.N on Tuesday, aiming to expand its solid rocket motor (SRM) production in the United States

** Kepler Cheuvreux stated that SRM certification is expected to start in Italy, followed by production at Avio's new factory in Virginia, USA, which has a $500 million investment (link)

** The brokerage expects the deal will absorb 50% of the new US factory’s capacity

** "This agreement is an important milestone for Avio in achieving its 2035 plan targets, and we are unanimously in agreement," Kepler said, reaffirming a "hold" rating and a target price of 30.5 euros (equivalent to $34.2)

** Equita Securities stated that the deal "significantly improves the outlook for new business in the US market"

** Of the 6 analysts covering Avio, 4 gave a "buy" rating, 2 offered a "hold" rating

(1 dollar = 0.8929 euros)

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