Leonardo shines in Piazza Affari, with a progress of 2% at the top from February 2020 at € 10.41 in the wake of new rumors. In fact, according to Reuters reports, Rheinmetall, one of the largest German industries in the field of armaments, would have sent to Leonardo a non-binding offer for 49% of Oto Melara, a subsidiary of Leonardo active in the production of guns, turrets, tanks and crawlers. The purchase transaction was valued for 190-210 million euros and there would be the possibility in the future for Rheinmetall to buy an additional 2% or more to become the majority shareholder of Oto Melara. The news is positive for Leonardo who is continuing with the group’s rationalization strategy through the disposal of non-strategic activities.
Equita recalls that as early as March 31st the news had circulated that Rheinmetall had expressed an interest in Oto Melara, but no indication of price had been provided. In particular, at the time there was talk of offers not only for Oto Melara but also for Wass, a Leonardo group company active in the construction of underwater defense systems, such as torpedoes or sonar, with valuations between 450 and 650 million euros (without specifying whether Equity or Enterprice Value). Now the Government node remains to be undermined. As Equita reports, at present there would still be no confirmation from the political power, which has the power to block or establish conditions on acquisitions in strategic sectors such as defense. For these reasons, the analysts of Equitywho maintain a Buy vision on Leonardo with a target price of 11 euros, believe that a final decision may still take some time.
Buy analysts on the stock
The title Leonardo with a performance by + 66% from the beginning of the year it is on the podium of the best blue chips in Piazza Affari and has outperformed not only companies in the same sector but also the Ftse Mib index, which has fallen by 10% since the beginning of 2022.
Looking at the consensus gathered by Bloomberg we see how almost all the analysts (18) following the title have a bullish view, 1 says to keep the stock in portfolio, while only 1 has a bearish view on Leonardo. The 12-month target price is € 11.96, which implies potential upside del 13,7% from current prices. We remind you that on June 20, Leonardo will pay dividends of € 0.14 per share (yield of 1.40%).
The technical point on Leonardo
Leonardo’s graphic picture shows a strengthening of buying pressure. In particular, after the collapse triggered by the pandemic between February-March 2020, which led to the stock losing 65% of its value; here is that from the minimum places to 4 euros, Leonardo has scored a progressive recovery, which has grown much stronger in recent months with the outbreak of war in Ukraine. In this sense, Leonardo’s technical situation strengthened after the bullish overcoming, at the end of February, of the quota 7,33 euroa level that had repeatedly rejected a rise in prices throughout 2021. Leonardo’s performance is convincing, in fact, since the minimum of 4 November in the 4 euro zone it is up 158%. The current phase could be preparatory to new extensions on the title and from this point of view a breakout with volumes of 11 euros could lead to an acceleration of the uptrend underway with upward target set at 12 eurosmaximum price from 2019. On the contrary, in the event of profit taking, the most important support levels for Leonardo are first in the psychological area of 10 euro; while a return of prices below 9.5 euros could quickly lead the stock towards i 9-8,75 euro. From the point of view of algorithmic analysis, the position of prices above the 50 and 200 period main moving averagesas well as the Long position of the direction indicator Parabolic Sar. As regards the risk on Leonardo, it appears to be rather contained as the level of intraday volatility is 2.09a level that indicates a stable trend of the stock.