Eyes on Leonardo, 41% of Mimit's industrial funds allocated to defence

(Il Sole 24 Ore Radiocor) - Eyes focused on Leonardo at Piazza Affari after the weakness of the last few sessions: the stock rallied a lot in the first part of the session, only to trim its gains at the end (after the news of the agreement between Ukraine and the U.S. on a possible peace plan) closing up 0.93%. The stock of the company led by Roberto Cingolani returns to rise after losing more than 8% in the last ten days. Since the beginning of the year, however, the stock has posted a gain of over 76%.

According to a report by Il Sole 24 Ore, a detailed analysis of the documents relating to the Budget Law under discussion reveals that over the three-year period 2026-2028 defence will absorb 40.9% of the budget, amounting to approximately EUR 10.3 billion out of the total EUR 25.1 billion. The resources will finance national and multinational strategic programmes, including frigates, submarines, helicopters, missile systems and armoured vehicles, as well as aeronautical and dual-use research and development projects. This measure is coherent with Italy's commitment to strengthening its capabilities in the NATO and European framework, following the conclusions of the Atlantic Alliance summit last June, from which emerged the commitment to increase defence spending to reach the target of 5% of GDP by 2035.

The news, comment Intermonte analysts, "confirms the structural strengthening of defence spending in Italy and the evolution of MIMIT into a truly strategic industrial policy tool for the sector". It is, therefore, 'a positive signal for the entire national defence chain', with Leonardo in the front row among the direct beneficiaries thanks to its aerospace, missile and helicopter programmes. According to experts, Fincantieri should also benefit from the news, thanks to its naval platforms, including new frigates, logistic units and submarines, but the stock is currently falling. In any case, Intermonte continues, the news reinforces 'the competitive positioning and the ability to seize opportunities in European and export markets' of both companies. Looking ahead, the increasing coordination with joint EU programmes "represents a further catalyst for consolidating Italy's industrial leadership in the defence sector", continue the Sim experts, who confirm a positive view on Leonardo with a target price of €63.

In line with the Italian company's performance, other European defence stocks also came to the fore. Rheinmetall, Renk and Hensoldt rose in Frankfurt, Thales and Airbus in Paris, and Saab advanced on the Stockholm Stock Exchange. The positive trend in the sector was also influenced by the news on the Ukrainian front, with the new Russian attacks on Kiev and a peace plan that is unlikely to be implemented any time soon, so much so that the Kremlin spokesman Dmitry Peskov, in the press briefing made it known that no updated version of the plan has been received by Moscow.