Leonardo SpA Az nom Post raggruppamento

LDO: XMIL (ITA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€93.00	Yfyqxnj	Tyvpfgbkw

Leonardo: Increasing Our Fair Value Estimate 38% on Enhanced Backlog and Lower Cost of Capital

Loredana Muharremi

Feb 29, 2024

We are increasing our fair value estimate for narrow-moat Leonardo to EUR 23 from EUR 16.60 previously. In addition to changes in our long-term volume and margin assumptions, we also reduced our cost of equity to bring Leonardo in line with other stocks under our European defense coverage. However, we are increasing our Morningstar Uncertainty Rating to High, from Medium, partly to reflect Leonardo's higher financial leverage compared with peers and to account for the wider range of potential equity value that it brings.

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