BofA cuts target for Leonardo stock to EUR 71.00

Published on 10/05/2026 at 11:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Leonardo booked EUR 10.0 billion revenue in the first half of 2026, up 12.00 percent. Leonardo stock costs EUR 47.68 on October 5, 2026 versus EUR 47.44.

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 (ISIN IT0003856405) was trading at EUR 47.68 at Lang & Schwarz on October 5, 2026 at 11:46 a.m. CEST, up 0.51 percent from the EUR 47.44 prior close. Bank of America, known as BofA, cut its Leonardo price target from EUR 79.50 to EUR 71.00 on October 1, 2026, according to Teleborsa. The bank kept its Buy recommendation while pointing to valuation complexity.

H1 orders set a higher base

Leonardo's first-half 2026 results provide the operating backdrop for the target revision. The company reported EUR 16.0 billion of new orders, up 45.00 percent year over year, and revenue of EUR 10.0 billion, up 12.00 percent, in the period, according to Leonardo.

EBITA reached EUR 780.0 million in the first half of 2026, an increase of 34.00 percent year over year, while free operating cash flow was negative EUR 249.0 million and improved 39.00 percent year over year. Leonardo also upgraded its fiscal 2026 guidance for orders, EBITA and free operating cash flow in the same release.

BofA sees value in execution

The lower target does not remove the bank's positive view of Leonardo's execution potential. BofA's EUR 71.00 target lies 48.91 percent above the EUR 47.68 Lang & Schwarz price, using the same euro currency and the October 5, 2026 quote.

The counter-factor is transparency. Teleborsa reported that BofA highlighted complex ownership structures and limited transparency around valuable holdings, including Leonardo's 25.00 percent stake in MBDA. That leaves execution and clearer reporting as the measurable conditions behind the bank's valuation argument.

Stock trades inside yearly range

Leonardo stock was trading 7.75 percent above its EUR 44.25 52-week low and below its EUR 66.26 52-week high on October 5, 2026. The stock's market capitalization was EUR 27.5 billion at the same date, placing the valuation discussion against a business that delivered double-digit first-half revenue growth.

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