A turbo call on Dassault Aviation to bet on the pursuit of catching up the title

After a long period without orders, this famous aircraft manufacturer is back to winning contracts. And the trend is probably not over. Enough to support the catching up of the title that we propose to anticipate with leverage by means of a turbo call.

The long period of famine seems to be ending for Dassault Aviation. Between a business aviation market at half mast for several years now, forcing the group to review its delivery target for this year of 40 to 30 aircraft and a last big export contract dating from the end of 2017 in the field of combat aircraft and the order of the 12 additional Rafale by Qatar, this famous aircraft manufacturer has seen its visibility seriously diminished. But the trend seems to be reversing since the beginning of September with first the order for 18 Rafales from Greece, including 12 used aircraft, then the purchase by the French army of 12 Rafale and 7 Falcon 2000 “Albatrosses” responsible for maritime surveillance and intervention. Now Indonesia is about to award him a 48 Rafale mega-contract. And it is probably not over since Dassault Aviation has responded to several calls for tenders launched in particular by Switzerland and India, a country with which the group is already working with a strong chance of obtaining an order for aircraft. additional. On the business aviation side, the release of the new Falcon 6X from next year should allow the group to regain good commercial momentum and regain market share. In short, nothing to justify on the stock market such a low valuation of Dassault Aviation since its capitalization of 7.89 billion euros barely corresponds to the sum of the company’s net cash of 3.8 billion and the value of the company. 24% stake in Thales (4.15 billion).

2.7x leverage

This is why the catching up of Dassault Aviation shares will continue. A turbo call allows movement to be accompanied with leverage. The chosen certificate is issued by Societe Generale without expiry and with a security threshold set at 643.09 euros below which the security must not fall. Otherwise, the turbo instantly loses almost all of its value. However, the large gap between the share price and this safety threshold limits the risk and provides the time necessary to unwind the position in the event of an unfavorable change in the security. In the meantime, the call has a leverage of 2.7 times. So in the event that the Dassault Aviation share climbs to 1,038 euros for example, the call will appreciate by 26.1%. But be careful because, conversely, if the share ebbs back to 850 euros, the turbo will depreciate in the same proportions by 26.1%.

Our advice: buy a Dassault Aviation turbo call issued by Société Générale (code: DE000CC36JE5); term: unlimited; level of funding: 598.6883 euros; security threshold: 643.09 euros; parity: 400 calls for 1 share; price: 0.88 euro; portion: 1.


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