Leonardo: Oddo BHF still a buyer
(CercleFinance.com) - Broker Oddo BHF has confirmed its buy rating on the Italian aerospace and defense electronics group Leonardo, along with its target of 12.
5 euros.
Admittedly, the broker states that central costs are soaring, under the effect of increased growth investments that are particularly targeting international markets and "digitisation".
However, according to Oddo BHF, improvements in profitability of its Defense Electronics and Aeronautics divisions are partially offsetting this. Likewise, joint ventures (ATR and satellites), which have been pretty downbeat, are expected to recover. In short, Leonardo's core business is resisting, and the rise in central costs, which has been described as a simple hitch in financial communication, is not calling into question improvements in profitability or the generation of cash, Oddio BHF says.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
5 euros.
Admittedly, the broker states that central costs are soaring, under the effect of increased growth investments that are particularly targeting international markets and "digitisation".
However, according to Oddo BHF, improvements in profitability of its Defense Electronics and Aeronautics divisions are partially offsetting this. Likewise, joint ventures (ATR and satellites), which have been pretty downbeat, are expected to recover. In short, Leonardo's core business is resisting, and the rise in central costs, which has been described as a simple hitch in financial communication, is not calling into question improvements in profitability or the generation of cash, Oddio BHF says.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.