Leonardo: Hold Rating Reiterated as Solid Q1 Results Offset by Cash Flow Concerns; Price Target Maintained at $62

In a report released today, Chloe Lemarie from Jefferies maintained a Hold rating on Leonardo Spa, with a price target of €62.00.

Chloe Lemarie has given his Hold rating due to a combination of factors, notably that Leonardo’s first‑quarter revenue matched market expectations while profitability modestly exceeded them thanks to margin improvements in aeronautics and defense electronics. Despite this earnings beat, the company’s free operating cash flow remained negative, only slightly better than consensus, which tempers the overall strength of the quarter.

Management confirmed its full‑year outlook, yet this guidance still does not incorporate the potential upside from the Iveco transaction, leaving additional uncertainty around the medium‑term profile. Against this backdrop of solid, but not transformational, results and an unchanged risk‑reward balance, Lemarie keeps her stance unchanged and maintains the price target at $62, supporting a Hold rather than a more decisive rating change.