Raising Our Fair Value for Leonardo to EUR 23 on Enhanced Backlog and Lower Cost of Capital

Leonardo has a well-diversified portfolio across geographies and platforms, with 83% of its revenue from defense and 17% from civil. Escalating global security concerns are driving higher growth in the defense market, which will be uninterrupted for at least several years, as many countries in Europe have underspent since the end of the Cold War. The company is strategically well positioned to benefit given its significant stakes in a broad array of major international defense projects.