BofA Keeps Leonardo SpA at Buy After Q3 Earnings; Forecasts Updated

11:09 AM EST, 11/06/2026 (MT Newswires) -- BofA Global Research retained its buy rating on Leonardo SpA (LDO.MI), with an unchanged price objective of 71 euros, after the Italian aerospace and defense group's third-quarter results beat expectations on key metrics. Leonardo's revenue reached 5.34 billion euros in the three-month period, 2% higher than consensus, analysts said in a Friday note. New orders and EBITA came in at 7 billion euros and 521 million euros, respectively, 13% and 18% ahead of market forecasts. "The FY guidance, which was unchanged except for increased orders to EUR29.5bn, implies a Q4 revenue/EBITA below consensus. We wouldn't read too much into this as management highlighted that it would not revise guidance for relatively small changes and acknowledged that results could exceed the current guidance. Our forecasts assume some upside, with our FY'26 revenue/EBITA estimates 3%/4% ahead of guidance," the research firm said. "An update on the proposed Aerostructures JV is now expected with the March 2027 Industrial Plan, which we think is unsurprising given the geopolitical situation in the Middle East. We see the March 2027 Industrial Plan update as the next catalyst, when we expect mid-single-digit upgrades to medium-term EBITA targets." Against this backdrop, BofA reduced its revenue, adjusted EBITA and EPS projections for 2026 through 2030.