Dassault Aviation, the French aerospace company behind the Rafale fighter jet, saw its stock price surge close to record highs in mid-May 2025, driven by a combination of geopolitical tensions, robust financial performance, and bullish technical signals.

On Friday, May 16, 2025, Dassault Aviation’s shares climbed nearly 2.4% during mid-day trading on the Paris Stock Exchange, reaching an intraday high of €309.40. This price is just about 10% below its all-time peak of €332.20, reflecting strong investor confidence and sustained upward momentum for the third consecutive session. The rally followed a volatile week: after a sharp 7% drop on Monday to around €292, the stock rebounded by more than 3% on Tuesday and continued to recover throughout the week.

The immediate catalyst for this surge was the escalation in India-Pakistan military tensions. On May 7, the Indian Air Force reportedly conducted "Operation Sindoor," targeting terrorist camps deep inside Pakistan using advanced weaponry, including SCALP and HAMMER missiles, with Rafale jets believed to be involved. This operation, which demonstrated the operational prowess and strategic value of Dassault’s Rafale jets, significantly boosted investor sentiment toward the company.

Technical analysis further supported the bullish outlook. Market experts observed the formation of a bullish hammer candlestick pattern on the monthly chart-a classic indicator of potential further gains. Many analysts predicted that the stock could soon approach its previous record highs in the short term.

Beyond the geopolitical tailwinds, Dassault Aviation’s strong financials have underpinned its rally. The company reported €6.24 billion in revenue and €924 million in net profit for the latest period, while the broader French aerospace and defense sector posted a 17.7% growth over the past year. Dassault’s long-term performance has been stellar, with the stock delivering over 347% returns in the past five years, underscoring its status as a multibagger in the sector.

The stock’s rebound also coincided with high-profile political developments, such as Indian Prime Minister Narendra Modi’s visit to Adampur Air Base, where he delivered a strong message to Pakistan, further reinforcing the strategic relevance of Dassault’s defense products.

Despite recent volatility and short-term fluctuations, the convergence of geopolitical developments, strong earnings, and positive technical signals has positioned Dassault Aviation’s stock near record highs, with market sentiment remaining optimistic about its near-term trajectory.

Agencies