FACC Lands Embraer Hat-Trick as Analysts See Double-Digit Upside

Austrian aerospace supplier FACC is flying high on multiple fronts. The company has not only delivered a robust first-quarter performance but also secured fresh validation from one of its most important customers — and a pair of analyst firms are betting the stock has further room to climb.

Embraer has named FACC its Supplier of the Year for the third consecutive year, an accolade handed to just ten companies worldwide. The partnership runs deep: FACC has supplied the Brazilian planemaker with structural components — including ailerons, spoilers and wingtips — since 2006, and has now won a new cabin interior contract. Looking further ahead, the two companies are collaborating with Eve Air Mobility, an Embraer subsidiary, on components for an electric vertical take-off and landing passenger aircraft.

The market has taken note. FACC shares currently trade at €13.86, roughly 27 percent above their 200-day moving average. The stock has gained around 20 percent since the start of the year and has nearly doubled over the past twelve months. That still leaves room for more, according to analysts.

Oddo BHF has reiterated its “Outperform” rating and lifted its price target from €15.50 to €16.00. While first-quarter margins came in below expectations, the EBIT margin improved for the fourth consecutive quarter versus the prior year, driven by the CORE efficiency programme. Oddo forecasts the EBIT margin will expand from 4.3 percent in the 2025 financial year to 7.8 percent by 2027.

Should investors sell immediately? Or is it worth buying Facc?

Montega is even more bullish, maintaining a Buy recommendation with a €17.00 target. Analyst Bastian Brach highlighted that the EBIT margin rose to 3.8 percent — a gain of 1.9 percentage points year-on-year. Both houses see double-digit organic growth through 2028, fuelled by the production ramp-up at aircraft manufacturers and the emerging drone market.

Not everything is smooth sailing. Inventories swelled to around €194 million, some €20 million higher than at the end of 2025, as OEMs delayed certain call-offs of finished components. Management expects a gradual normalisation in the second half of the year. Geopolitical tensions in the Middle East remain a wild card, with airspace restrictions and rising energy costs potentially weighing on aircraft deliveries in 2026. Montega’s Brach views the supply chain disruptions as temporary, stressing that structural demand in the aviation market remains intact.

FACC has confirmed its outlook for the 2026 financial year, targeting revenue growth of between 5 and 15 percent alongside further operational improvement. The wide range reflects ongoing uncertainty in the global environment. From the third quarter of 2026, a new automated fibre placement system at the Reichersberg plant is expected to reduce error rates and stabilise cost calculations.

Facc at a turning point? This analysis reveals what investors need to know now.

At €13.78, the stock sits roughly 11 percent below its 52-week high of €15.50. Montega’s €17.00 target implies additional upside of around 23 percent. Oddo argues that the current valuation fails to fully reflect the company’s double-digit growth potential and substantial margin expansion. How quickly that gap closes will depend on the resolution of supply chain bottlenecks — and whether the situation in the Middle East stabilises.

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