0917 GMT - Leonardo's shares value could double over the next three years, driven by growing margins thanks to higher European defense spending, Morgan Stanley analysts Ross Law and Marie-Ange Riggio say. The Italian aerospace and defense company could reach a capitalization of 59 billion euros by 2028, or 102 euros per share, they say. Leonardo will clearly need to expand capacity to cope with higher demand, they caution. But ramping up production of the its defense electronics unit, which is the group's highest margin business, should be the easiest, the analysts note. They say, however, that investor sentiment could be dampened if Leonardo fails to plug the cash burn in its loss-making aerostructures division, or by its management's desire to invest more into the space domain. Shares are up 3.5% at 49.48 euros. (cristina.gallardo@wsj.com)
(END) Dow Jones Newswires
March 19, 2025 05:18 ET (09:18 GMT)
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