Leonardo (BIT:LDO) Climbed Today, But What Is Behind The Fresh Attention?

Leonardo (BIT:LDO) just expanded its space ambitions. The group’s Space Division is teaming up with Unibap Space Solutions to adapt high performance iX20 onboard computing for defense focused Earth observation satellites.

Recent trading tells a mixed story for Leonardo. The share price is €46.81 after a 1-day share price return of 2.21%, yet the 90-day share price return is down 9.67% and the 1-year total shareholder return is down 10.44%. This comes despite a very large 5-year total shareholder return that shows long term holders have seen substantial gains.

Compare Leonardo’s move into smarter satellites with other defence and space players by scanning our hand picked 92 AI infrastructure stocks, which is shaping the backbone of next generation data processing.

Given Leonardo’s recent pullback and this push into smarter satellites, investors are left weighing the bigger force. Has most of the upside already played out, or do the current numbers still point to room ahead?

Most Popular Narrative: 42% Undervalued

On the most followed view, Leonardo’s fair value sits at €80.89, well above the last close at €46.81. This frames the new space initiative as part of a broader earnings and cash flow narrative, rather than a one off contract win.

The Michelangelo air defense concept targets about €6b of orders between 2026 and 2030 and roughly €21b over the following decade, with a heavy tilt toward recurring cyber and software based services rather than pure hardware. This could shift Leonardo’s revenue mix toward higher visibility and service driven margins.

See why 11 investors see Leonardo as 42% undervalued.

Result: Fair Value of €80.89 (UNDERVALUED)

Still, the bullish Leonardo story quickly frays if political interference unsettles leadership or if Aerostructures continues to drain over €100m of cash in 2026.

Find out about the key risks to this Leonardo narrative.

Next Steps

If the combination of caution and optimism around Leonardo feels unresolved, that is precisely the intention. Act promptly, examine the underlying data in detail, and rigorously compare your own conclusions with the 5 key rewards.

Looking for more investment ideas beyond Leonardo?

If Leonardo has sharpened your focus on quality, do not stop here. Cast a wider net across different styles so your watchlist can evolve with your thinking.

• Target potential mispriced opportunities by scanning the 174 high quality undervalued stocks that combine strong fundamentals with prices that may not fully reflect their underlying strength.
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• Hunt for future leaders early by checking a 618 high quality undiscovered gems where quality metrics look solid but market attention still feels limited.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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