Leonardo (BIT:LDO) Could Be 26% Undervalued As Unibap Deal Sharpens Space ISR Focus

Leonardo (BIT:LDO) has partnered with Unibap Space Solutions to adapt high performance onboard computing for satellites, aiming to speed up intelligence, surveillance, and reconnaissance data delivery directly from orbit.

Investors have pushed Leonardo’s share price up 4.73% in the last day and 7.71% over the past week, with the stock now at €50.42. The 1-year total shareholder return of 6.09% sits against a very large 3-year gain of around 7x, which hints that momentum has cooled recently, even as news like the Unibap partnership keeps the longer term story in focus.

Scan other defense and space contractors with similar ISR and edge-computing potential by reviewing the handpicked 55 AI infrastructure stocks along with Leonardo.

Leonardo has already delivered a very large multi year return, while the past year looks far more muted. After this latest move and partnership news, does the current price still leave much upside on the table?

Most Popular Narrative: 26% Undervalued

The most followed narrative on Leonardo values the shares at €68.28 using a 10.33% discount rate. This estimate is above the latest €50.42 close and presents the current move as part of a longer re-rating debate rather than a short term spike.

The pivot from legacy platforms to integrated, multi-domain and open-architecture systems, illustrated by offerings such as the Michelangelo air defence dome that is expected to reach about €6b of orders in 2026 to 2030 and roughly €21b to 2035, could increase higher margin Defence Electronics weight in the mix and support ROS expansion.

See why 88 investors see Leonardo as 26% undervalued.

Result: Fair Value of €68.28 (UNDERVALUED)

Still, the bullish Leonardo story runs into real friction if Aerostructures keeps draining cash or if governance flashpoints around the CEO change start to erode execution.

Find out about the key risks to this Leonardo narrative.

Next Steps

If the mood of this Leonardo story feels optimistic, treat it as a prompt to move quickly, review the underlying numbers in detail, and stress test your own thesis by examining the 5 key rewards.

Looking for more investment ideas beyond Leonardo?

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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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