The Iveco title recorded a sensational dump of 21.5% on Friday, continuing its rally which for weeks has been keeping the bench in the markets for weeks. To push it was above all the news of the possible separation of the defense division, an operation that could become the main catalyst for future growth. The title has reached new historians, touching the 15.18 euros per share in today’s first counterattacks, exceeding the previous record of 14.58 euros marked in April. Today’s closing for 14.4 euros.
After its separation from CNH Industrial (ground movement tractors and machines that occurred in January 2022, Iveco experienced a significant rise, with a performance that exceeded 50% in a year. The best operational results of the expected for the fourth quarter of 2024 and the prospects of turnover growing for 2025 confirmed the trust of the investors, further rewarding the title. To give a further thrust to the rally was the decision to increase the annual dividend to 0.33 euros per share, compared to 0.22 euros of the previous year.
However, the element that seems to capture the attention of analysts is the separation of the defense division, a move that could have a decisive impact on the value of the group. Oddo Bhf’s judgment reflects this positive expectation, with the analysis institute that promoted the “outperform” title and has increased the price target of 10.50 euros to 17 euros per share. This change of evaluation highlights the trust in the future of the company and in its growth prospects, also fueled by the separation of the defense division, scheduled for 2025.
Many observers believe that the spin-off of the defense division can improve the concentration of Iveco on its core activities, reducing the risks related to the influence of Italian politics, which often exerts strong pressure on the military sector. This aspect has contributed to increasing the speculative appeal of Iveco Group, in particular among investors who see in the future without the military division a more solid and less subject to geopolitical risks.
Deutsche Bank also revised upward evaluations, the upward reviews do not stop here: Equita, for example, has increased the evaluation of the title of 14%, with an estimate of value of the defense division that reaches around 1.3 billion dollars. Initially, when the items on the possible escort of the defense division had taken hold, the estimates spoke of an evaluation between 750 million and one billion euros, but now the numbers appear much more consistent.
The separation of the defense division could attract the interest of other industrial actors, including Leonardo, one of the main groups of the defense sector in Europe. The possible Leonardo alliance could further consolidate Iveco’s position in the market, opening new opportunities in an increasingly favorable geopolitical context to the investments in defense.
On the operational front, the expectations for the future remain favorable. As regards the technical analysis, resistances are between 14.93 and 15.86 euros, and the solidity of the company performances, combined with the growth prospects for the next year, suggest that the Iveco title will continue to be a point of reference for investors. The possible future evolutions, such as the spin-off of the defense division, could further transform the company, making it even more solid and attractive for new investors.
In conclusion, the Rally of the Iveco title seems destined not to stop, with analysts who continue to review their estimates up and recognize the growing value of the company. The separation of the defense division could mark a fundamental turning point, transforming Iveco into an even more robust reality, capable of responding to the challenges of a constantly evolving market.
