Italian defence stocks: as geopolitical tensions persist and defense budgets globally see an uptick, Italian arms-related stocks have been under the investor spotlight. This article delves into the year-to-date (YTD) performance, target prices, technical analysis, and analyst recommendations for two key players: Leonardo (formerly Finmeccanica) and Iveco Defence Vehicles (a brand of Iveco Group). Is now the time to invest, or should caution prevail?
Leonardo (LDO): Riding a Wave of Strong Orders and Strategic Focus
Leonardo, the Italian aerospace and defense giant formerly known as Finmeccanica, has demonstrated robust performance since the beginning of the year.
1. Year-to-Date Performance: Leonardo’s stock (LDO.MI) has experienced a significant surge in 2025. As of late May, the shares have registered a remarkable YTD increase, building on the strong momentum from the previous year. This rally is largely attributed to a solid order backlog, increased defense spending by European nations, and the company’s strategic positioning in key defense and security sectors.
2. Target Price: Analyst consensus and recent evaluations place Leonardo’s target price at varying levels, generally indicating further upside potential. Many investment banks have revised their target prices upwards throughout the year, citing strong fundamentals and positive sector outlook. The average target price currently hovers in a range that suggests confidence in the company’s continued growth trajectory.
3. Technical Analysis: From a technical standpoint, Leonardo’s stock has been in a clear uptrend for an extended period. Key moving averages indicate bullish sentiment. However, some technical indicators may suggest the stock is approaching overbought territory in the short term, potentially signaling a consolidation phase or a minor pullback before a possible continuation of the uptrend. Resistance and support levels should be monitored closely by traders.
4. Analyst Recommendations: The overwhelming sentiment among financial analysts is positive for Leonardo. The majority of analysts maintain a “Buy” or “Outperform” rating on the stock. This optimism is fueled by the company’s strong order intake, its role in major European defense programs, and its improving profitability. While some analysts advise caution due to the sharp recent rally, the long-term outlook remains favorable.
Iveco Group (IVG): Defense Division Fuels Growth Amidst Broader Market Dynamics
Iveco Group, known primarily for its commercial vehicles, also has a significant presence in the defense sector through Iveco Defence Vehicles (IDV). While the broader Iveco Group’s performance is influenced by various market segments, its defense arm has been a notable contributor.
1. Year-to-Date Performance: Iveco Group’s stock (IVG.MI) has also seen positive performance year-to-date, though potentially more moderate compared to pure-play defense stocks like Leonardo. The company’s diverse portfolio means its overall stock movement reflects trends in commercial, industrial, and defense markets. Nevertheless, the strong performance of its defense division has provided a significant boost.
2. Target Price: Target prices for Iveco Group from various analysts show a generally positive outlook. Analysts typically highlight the strength of Iveco Defence Vehicles, its robust order book, and its technological advancements as key drivers for future value. The consensus target price suggests potential for further appreciation from current levels.
3. Technical Analysis: Technical analysis for Iveco Group’s stock indicates a positive trend, with key moving averages generally supporting a bullish outlook. However, like Leonardo, its recent gains might warrant attention to potential overbought conditions in the short term. Monitoring trading volumes and key support and resistance levels will be crucial for investors.
4. Analyst Recommendations: Analyst recommendations for Iveco Group are largely positive, with many suggesting a “Buy” or “Hold” stance. The company’s restructuring efforts, focus on innovation (including in its defense segment), and the solid performance of IDV are often cited as reasons for optimism. While the commercial vehicle market can be cyclical, the defense component provides a stable and growing revenue stream, making the stock an interesting proposition for a diversified portfolio.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investing in the stock market carries risks, and investors should conduct their own thorough research or consult with a qualified financial advisor before making any investment decisions.
Italian Defence Stocks on the Move: Leonardo & Iveco Under the Microscope – Time to Buy?
Rome, Italy – As geopolitical landscapes shift and defence budgets see renewed attention, Italian arms and military vehicle manufacturers are increasingly in the spotlight. Investors are closely watching key players like Leonardo S.p.A. (formerly Finmeccanica) and Iveco Group. This article delves into their recent stock performance, analyst target prices, technical analysis snapshots, and what experts are suggesting for potential investors.
Leonardo S.p.A. (LDO): Flying High on Strong Performance
1) Year-to-Date Performance: Leonardo (BIT:LDO) has demonstrated robust growth in 2025. As of late May 2025, the stock has registered an impressive year-to-date (YTD) gain, with some sources indicating an increase of approximately +96.52% (Wiener Börse, as of May 26, 2025), while others suggest figures closer to +114.50% (TradingView). This surge reflects strong market confidence and positive developments within the aerospace and defence giant.
2) Target Price: Analyst target prices for Leonardo generally reflect a positive outlook, though with some variation. Consensus figures hover in the €52.00 to €56.00 range. For instance, some analyses point to an average target of around €52.37, with highs reaching €60.00. Jefferies recently updated their target price to €55.00. Investors should note that different analysts and financial platforms may present slightly varied targets.
3) Technical Analysis: From a technical standpoint, Leonardo’s stock has been on a significant upward trend over the past year. Most moving averages indicate a “Buy” signal, underscoring the strong momentum. However, some shorter-term indicators, such as the MACD or Williams %R, have occasionally shown neutral or sell signals, suggesting potential for short-term consolidation or pullbacks within the broader uptrend. Overall, the technical picture remains largely bullish.
4) Analyst Recommendations: To Invest or Not? The consensus among analysts leans towards a positive stance on Leonardo. Many investment firms maintain a “Buy” or “Moderate Buy” rating on the stock. The company’s strong order backlog, its role in major European defence initiatives, and increased global defence spending are often cited as key drivers. While some analysts might advise a “Hold” pending specific catalysts or entry points, the overarching sentiment suggests that Leonardo remains a stock to consider for investors looking for exposure to the defence sector, keeping in mind the inherent risks of equity investments.
Iveco Group (IVG): Driving Forward with Momentum
1) Year-to-Date Performance: Iveco Group (BIT:IVG), which includes defence vehicle operations, has also seen a strong performance in 2025. While precise YTD figures can fluctuate daily, reports around late May 2025 indicated a six-month performance (a close proxy for YTD in this context) showing gains in the ballpark of +94.35% (Borsa Italiana data). This highlights significant investor interest in the industrial and defence vehicle manufacturer.
2) Target Price: Analyst target prices for Iveco Group show a degree of optimism. Recent targets from various analysts place the stock in a range, with some firms like Equita SIM recently setting targets around €18.50. The average 12-month analyst target price, according to some platforms, hovers around €16.90 – €17.00. As with any stock, these targets are dynamic and reflect evolving market conditions and company performance.
3) Technical Analysis: Technical indicators for Iveco Group present a more mixed short-term picture within a longer-term positive trend. While the stock has demonstrated significant upward momentum over recent months, some indicators like the Relative Strength Index (RSI) have been noted as neutral, while others like the Stochastic Oscillator (STOCH) have occasionally flashed “Sell” signals, potentially indicating overbought conditions in the near term or the possibility of a consolidation phase. However, the Moving Average Convergence Divergence (MACD) has at times indicated a “Buy”. Investors should watch for support and resistance levels.
4) Analyst Recommendations: To Invest or Not? Analyst ratings for Iveco Group are generally positive, with a common consensus leaning towards “Buy” or “Hold”. For instance, recent ratings show a number of analysts suggesting a “Buy”, while others opt for a “Hold” or “Neutral” stance. Factors supporting a positive outlook include Iveco’s diverse portfolio, its role in specialized vehicle markets (including defence), and restructuring efforts. However, the cyclical nature of the industrial vehicle market and specific financial metrics might lead some analysts to a more cautious approach. Potential investors should weigh the growth prospects against the potential for volatility.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Stock market investments carry risks, and investors should conduct their own thorough research or consult with a qualified financial advisor before making any investment decisions.
