RBC Launches Leonardo SpA Coverage at Outperform Amid Expectations of Portfolio Growth

12:05 PM EDT, 08/11/2026 (MT Newswires) -- RBC Capital Markets began its coverage of Leonardo SpA (LDO.MI) with an outperform rating, setting the price target at 70 euros, as part of its wider European Defence Primes sector launch. "An 18% 2025-30E EBITA CAGR (vs peer average 16%), 11% EBITA upside vs 2030E consensus and a sector-average valuation already make Leonardo an attractive investment case. Additional M&A/JV optionality (>200bps p.a. top-line growth) and Italian defence spending upside risk (up to 600bps p.a. growth acceleration) compounds this further. We see Leonardo as well-placed to benefit from European rearmament," the research firm said in a Tuesday note. The Italian aerospace and defense group's revenue is anticipated to see a 12% compound annual growth rate over the 2025 to 2028 period, while its core portfolio is projected to grow 9% per year on the back of rising global defense spend, albeit with a more "limited" growth profile.