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Leonardo (BIT:LDO) Puts Cyber Growth In Focus After SignalTrace As Valuation Questions Build

Simply Wall St · 2d ago

Leonardo (BIT:LDO) is back in focus after its US Cyber & Security Solutions unit introduced SignalTrace, a refreshed electronic signature detection product that highlights the company’s ongoing work in cyber and security technologies.

See our latest analysis for Leonardo.

Set against this product update, Leonardo’s recent share price momentum has been strong, with a 30 day share price return of 18.92% and a 1 year total shareholder return of 26.83%, while the 5 year total shareholder return is very large.

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After a sharp move like this, some investors will want to lock in gains, while others think the SignalTrace story is just getting started. Is it better to buy Leonardo now, or wait for a cooler entry point, as the valuation section below outlines?

Most Popular Narrative: 13% Undervalued

The most followed narrative on Leonardo sees fair value at about €68.67 compared with the latest close at €59.90. This frames the current move after SignalTrace in valuation terms rather than just sentiment.

Leonardo's strong push into cybersecurity, AI, and digital defense electronics, bolstered by targeted acquisitions and significant order growth (20%+ CAGR in cyber division), aligns with the increasing demand for next-generation infrastructure in both military and civil sectors, supporting higher-margin revenue streams and future earnings expansion.

Read the complete narrative.

Want to see what sits under that cyber growth story? The narrative leans on faster revenue expansion, improving margins and a richer profit multiple. Curious which assumptions really carry that €68.67 fair value.

Analysts behind this narrative also build in steady revenue growth, rising profitability and a specific discount rate of 10.36%. Together these inputs shape their view of Leonardo as modestly undervalued at current levels.

Result: Fair Value of €68.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upbeat Leonardo narrative still hinges on fixing losses in Aerostructures and executing integrations like Iveco Defence without cost overruns or weaker-than-expected synergies.

Find out about the key risks to this Leonardo narrative.

Next Steps

If the tone so far feels optimistic on Leonardo, this is a good time to review the numbers yourself and decide quickly where you stand. To understand what investors see as positives, take a closer look at the 4 key rewards.

Looking for more investment ideas beyond Leonardo?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.