Bank of America cuts target for Leonardo stock to EUR 71.00

Published on 10/06/2026 at 15:36 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

The DDX program gives Leonardo a EUR 1.70 billion allocation. Leonardo stock costs EUR 47.11 on October 6, 2026 versus EUR 48.24 prior close.

Pop-Art-Comic-Illustration eines stilisierten Kampfjets über einer Stadtsilhouette — Pop-Art-Comic mit Kampfjet visualisiert Luftfahrt- und Rüstungsbranche von Leonardo S.p.A., ISIN IT0003856405, Illustration mit AI erstellt.

Leonardo (IT0003856405) was trading at EUR 47.11 at Lang & Schwarz on October 6, 2026 at 3:32 p.m. CEST, down 2.34 percent versus the prior close of EUR 48.24. According to Teleborsa on October 1, 2026, Bank of America cut its Leonardo target from EUR 79.50 to EUR 71.00 while retaining its Buy rating. The target revision is the clearest valuation signal in the latest coverage.

Bank of America lowers valuation target

Bank of America's EUR 71.00 target leaves the Lang & Schwarz price EUR 47.11 at 33.65 percent below the target. Teleborsa said the bank's central concern was the difficulty of valuing Leonardo's complex holdings and the limited transparency around some assets.

The same report cited estimated enterprise-value-to-operating-profit multiples of 13.60 for 2027 and 11.40 for 2028. Those figures frame the target cut as a valuation adjustment rather than a change to the company's Buy rating.

Naval contract adds EUR 1.70 billion

On September 24, 2026, Leonardo reported that Orizzonte Sistemi Navali signed a EUR 3.70 billion contract for two DDX destroyers for the Italian Navy. Leonardo owns 49 percent of the joint venture and is assigned a contract share of EUR 1.70 billion.

The DDX combat system is designed around Leonardo technologies, while the first and second ships are scheduled for delivery in 2033 and 2035. The long delivery schedule makes the contract strategically important but limits its immediate earnings effect.

First-half orders rise 45.00 percent

According to Leonardo in its first-half 2026 results, new orders reached EUR 16.0 billion, up 45.00 percent year over year. Revenue rose 12.00 percent to EUR 10.0 billion, while EBITA increased 34.00 percent to EUR 780.0 million.

Free operating cash flow was negative EUR 249.0 million in the first half of 2026, despite the higher order intake. Leonardo's next scheduled report covers the nine months ended September 30, 2026, with the results date set for November 6, 2026.

Stock remains above yearly low

At EUR 47.11, Leonardo stock stood 28.92 percent below its 52-week high of EUR 66.26 and above its 52-week low of EUR 44.25 on October 6, 2026. The daily decline therefore leaves the share closer to its yearly low than to the upper end of its trading range.

The further course of trading is shown by the continuously updated real-time quote of Leonardo stock.