Leonardo
Note: This is a daily stock update and the information stands true as of 03/04/25, 09:00 CET.
Company Update:
Expert Opinion:
Leonardo offers attractive prospects and is very well positioned to benefit from the expected massive surge in defence spendings. Valuation remains decent when taking into account that expected massive increase. Despite the very strong share price performance, Leonardo remains an attractive stock to buy and hold for the next few years.
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Company Update:
We remain positive on the defense sector in general an on Leonardo in particular. The group’s industrial plan will enable to meet increased demand and to boost profitability going forward particularly in defence electronics and helicopters. As defence budgets soar, Leonardo is perfectly positioned to capitalize on this shift.
Leonardo’s EBITA is projected to more than double by 2029, outpacing revenue growth and driven by operating leverage, stringent program management and a group-wide efficiency plan. The company is targeting €1.8bn in cost savings between 2024 and 2028, supporting sustainable margin expansion. We have upgraded our numbers raised our EPS for 25 and 26 by 6.2% and 5.9% respectively. We have significantly raised our target price to reflect the structural change in the defence industry in Europe.
In all, we move back to an add rating with a target price of €44.6 offering 22% upside.
Expert Opinion:
Leonardo offers attractive prospects and is very well positioned to benefit from the expected massive surge in defence spendings. Valuation remains decent when taking into account that expected massive increase. Despite the very strong share price performance, Leonardo remains an attractive stock to buy and hold for the next few years.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Solid start of 2025 with signs of recovery in key markets.