Leonardo Ord Share Price (0ONG)

GS lifts Leonardo to BUY from NEUTRAL, with a target of 11,70€

Leonardo posted strong results & a great outlook for 2022!
https://www.leonardo.com/en/press-release-detail/-/detail/10-03-2022-leonardo-2021fy-financial-results
Stock acting nicely!

13th largest defence company globally, just by the stripped out defence revenues.
At 8.1160 Euros the market capitalisation is just 4.7 billion Euros.
Estimate revenues/EBITDA/net income 2021/2022/2023 in €:
14.146/1.592/511 - 14.804/1.720/639 - 15.415/1.860/749
EPS 0.88 / 1.15 / 1.32 in €
The Italian government owns 30.2 per cent of the share capital (578.1 million shares).
In the past, one concern was the debt load. Net debt in billion Euros 3.232 (2021) - 3.080 (2022) - 2.726 (2023), not today anymore.
A good broad range of defence equipment and well connected to the US army with the DRS Technology acquisition in 2008 - which was a bit too expensive $5.2 billion. But the responsible managers are all gone. Complete new management moved in since 2017.
Last year the IPO of DRS failed as the US investment banks priced the deal too low. Leonardo DRS would have had a market cap of just $3.2 billion. The company withdraw the deal - which was right & smart. With the sector valuation moving up sharply over the last few days (Hensoldt is up 113 per cent in five trading days, and Leonardo bought a 25.1 per cent stake in January 2022), they could reconsider a listing and pay down debt.
Leonardo itself is in negotiations to sell its armoured vehicle and some ammunition business - well-timed!