Strong rise in the entire defense sector with investors who bet on the go -ahead for the European REMO program, also with the use of Eurobond. From the comparison of multiples Leonardo It emerges as the most convenient in the sector in Europe. The company tomorrow with closed markets will present the accounts. An appointment that will serve the bag to calibrate the objectives well. The title, in fact, reached its historical maximum by exceeding 36euro and shattered all analysts’ estimates. The consensus collected by Bloomberg indicates an average target price of 31.73 euros, exceeded by events, with 14 buy, 3 holds and only 2 sells.
In the last month the security has earned 26.5% following the sector trend. In Stockholm Saab salt of31%, in Paris Thalés advances by 23%, in Frankfurt Rheinmetall earns 35.4%and London Bae Systems marks a 7%rise. The European Stoxx Europe Aerospace & Defense index is up 13%, while the general index of the European stock markets Stoxx Europe 600 advances only 6.5%.
During the weekend, representatives of governments around the world met in Germany for the Munich conference conferencewhere the spending on European defense was the center of attention. At that venue von der leyen He said that Brussels intends to propose to exempt the expenditure for the defense from the rules of the budgets of the EU Member States. In a nutshell, Europe, taken on the counterattack from the change of policy of the new Washington administration, is trying to give itself the tools to quickly put an autonomous and effective defensive system together.
To keep NATO standing, the USA want military spending in each member country to at least 5% of GDP. This is what the American defense secretary asked, Pete Hegseth, in a recent summit in Brussels. Today among the member countries of NATO, 9 (including Italy) have a military spending of less than 2% of GDP. The Italian government has already undertaken to rise to 3% and this projection will easily favor Leonardo shares, which, however, since the beginning of the year have already risen by 28%. In the last 12 months Leonardo’s rise has been 74%.
Although this race the Italian society is among the least dear, With a P/S of 19 times on the estimated profits for 2025. The German Rheinmetall, who has an almost double Leonardo’s capitalization, is exchanged 28 times the profits of 2025. The Swedish Saab is also more dear than Leonardo, with a P/S 2025 of 24 times. Among the big European defense names, Leonardo has more or less the same assessments as the British Bae Systems, a giant also with double capitalization compared to the Italian company, and a multiple P/and 2025 of 17 times.
