10 Best Italian Stocks To Buy Now

06. Leonardo S.p.a. (OTC:FINMY)

Upside Potential: 24.34%

Latest Average Share Price Target: $14.20

Leonardo S.p.a. (OTC:FINMY) is a pivotal player in Italy’s industrial and technological landscape, specializing in defense, aerospace, and security sectors. The company operates globally, with notable influence in Italy, the UK, the US, and other regions. Leonardo S.p.a. (OTC:FINMY) diversified portfolio includes helicopters, defense electronics, aircraft, and space systems, making it a top pick among Italian stocks. With a solid track record of growth and innovation, Leonardo S.p.a. (OTC:FINMY) stock shows promise, making it a strong contender for investors seeking exposure to Italy’s thriving defense and aerospace sectors.

Leonardo S.p.a. (OTC:FINMY) financial performance in the first half of 2024 demonstrates its resilience and growth potential. Revenues increased by 11%, reaching €8 billion, while EBITDA grew by 13.3%, from €444 million to €503 million. These figures highlight the company’s robust operational efficiency, as well as its ability to capitalize on growing demand in its core sectors. The return on sales also improved slightly to 6.3%, underscoring the company’s profitability despite challenging market conditions.

Key to Leonardo S.p.a. (OTC:FINMY) bullish outlook is its ability to secure new orders, which grew by 15.6%, contributing to a backlog of €43 billion, up from previous levels. This backlog ensures sustained revenue generation in the coming years, particularly in high-growth areas such as space and cyber security, where Leonardo is actively expanding its capabilities. The company’s free operating cash flow improved by 8.4%, a sign of better cash management, while net debt decreased by 18.2%, showing a stronger balance sheet.

The company’s focus on digitalization and efficiency measures has further enhanced its operational performance. For instance, Leonardo S.p.a. (OTC:FINMY) digital twin technology and big data analytics in its helicopters and aircraft smart factories are driving productivity and cost savings. Additionally, a savings plan of €1.8 billion over the next five years, with €150 million targeted for 2024, is on track, reinforcing the company’s commitment to cost optimization. In conclusion, Leonardo S.p.a. (OTC:FINMY) strong financials, strategic growth in key sectors, and ongoing efficiency improvements make it a solid investment choice with significant upside potential. Investors can expect continued growth as the company leverages its technological advancements and international partnerships.