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Investing.com - Goldman Sachs initiated coverage on Leonardo Spa (BIT:LDO) (OTC:FINMY), a prominent player in the Aerospace & Defense industry, with a Neutral rating and a price target of EUR50.00 on Friday. The company has demonstrated remarkable performance, with a 118% year-to-date return according to InvestingPro data.
The investment bank cited the decisive actions taken by Leonardo’s CEO since 2023 to implement a four-year industrial plan, which Goldman Sachs expects will drive strong EBITA growth across the group.
Goldman Sachs forecasts approximately 12% EBITA CAGR for Leonardo from fiscal year 2025 through 2030, reflecting the anticipated positive impact of the industrial plan.
Despite the positive growth outlook, Goldman Sachs noted its forecasts are now broadly in line with consensus EBITA estimates, suggesting the base case scenario is already priced into the stock.
The EUR50 price target implies Leonardo’s fair value is 15 times 12-month forward EV/EBIT, with Goldman Sachs indicating that "the onus is now on the company to deliver in line with its plans."
In other recent news, Leonardo Spa has seen a notable shift in analyst ratings following its recent financial disclosures. Kepler Cheuvreux upgraded Leonardo Spa from Hold to Buy, citing an increase in the company’s guidance. This upgrade followed the company’s announcement of a 7% rise in its intake forecast and a 9% increase in its free operating cash flow forecast. Meanwhile, Barclays initiated coverage on Leonardo Spa with an Equalweight rating, highlighting the company’s diverse portfolio in aerospace, defense, and cybersecurity. However, Barclays expressed concerns about growth limitations due to Leonardo’s reliance on Italian and UK defense budgets, which may not grow as rapidly as those in other European countries. These developments reflect a mixed but cautiously optimistic view from analysts regarding Leonardo Spa’s future performance.
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