Leonardo Spa (0ONG – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Chloe Lemaire from Jefferies maintained a Buy rating on the stock and has a €55.00 price target.
Chloe Lemaire has given her Buy rating due to a combination of factors that highlight Leonardo Spa’s strong performance and potential for growth. The company’s first-quarter sales exceeded expectations by 6%, reaching €4,159 million, which is a positive indicator of its market position and operational efficiency. Additionally, the EBITA results were 3% above consensus, demonstrating the company’s ability to manage costs and generate profits effectively.
One of the primary contributors to this performance was the robust growth in the Helicopters division, which saw a 9% increase in sales and a 16% rise in EBITA compared to consensus estimates. This growth was slightly offset by challenges in the Aerostructures segment, but overall, the company’s financial health remains solid. Furthermore, the Free Operating Cash Flow (FOCF) was better than expected, standing at €(580) million compared to the consensus of -€663 million. The reaffirmation of the full-year guidance also suggests confidence in continued strong performance, supporting the Buy rating.