Leonardo and the Directorate of Aeronautical Weapons and Airworthiness yesterday signed the acquisition contract for the supply to the Slovenian Ministry of Defense of a C-27J Spartan aircraft, additional equipment for aero-medical operations, training and support services integrated logistics for a period of two years. The contract follows the Government-Government Agreement between Italy and Slovenia (G2G) signed on 17 November by the Italian Minister of Defense Lorenzo Guerini and the Slovenian Minister of Defense Matej Tonin, and is aimed at strengthening bilateral collaboration between the two countries. Lucio Valerio Cioffi, General Manager of Leonardo, declared: “We are delighted to have reached this milestone as part of the G2G initiative between Italy and Slovenia.
Mediobanca analysts highlight yesterday’s announcement regarding the delivery of the third and fourth Eurofighter Typhoon (multi-role military aircraft) to Kuwait, as part of a larger order for a total of 28 aircraft to be delivered to the Air Force of Kuwait. “Leonardo represents with its activities about 36% of the value of the Eurofighter program, with its key role in terms of aeronautical components and on-board electronics”, the Mediobanca specialists write in a report. For these reasons, analysts confirm the outperform rating and target price of € 11.50 for the share. Equita sim experts share the same opinion, confirming the buy rating, risk medium and target price at 11 euros.
Banca Akros, recalling the value of the contract signed in 2016 (8 billion euros) and the government’s intention to increase military spending from the current 9 billion to 35 billion to reach 2% of GDP in the long term, assigns the rating buy and the target price of 12 euros. Bestinver Securities, on the other hand, focuses on the offer to Leonardo and the government by the German Rheinmetall to acquire 15% of Oto Melara and the entire stake in Wass. “We consider the news to be positive because it highlights Leonardo’s strategy of divesting non-strategic assets” write Bestinver analysts, who assign a buy rating and target price between 10 and 11 euros. The stock currently stands at € 9.078, losing 1.33%.
The largest Italian aerospace company has been benefiting from the beginning of the year and, in particular, from the outbreak of the conflict in Ukraine, from a series of positive news for the defense sector, especially following the general rearmament race in European countries. In Italy, the gap between the position of the M5s, opposed to the increase in the military budget, and that of the government, eager to align itself with the NATO target of 2% of GDP subscribed by the Member States in 2014, seems to be attenuating. In today’s vote, the Senate has approved the question of confidence posed by Prime Minister Mario Draghi on the Ukrainian decree-law (which provides for measures for the reception of refugees and the dispatch of military equipment to Kiev) with 214 votes in favor, 35 against and no abstention out of 249 senators present .
A note from the M5s underlines that “according to Draghi’s statements today, the 2024 constraint has been taken more as an indication than as a goal, because many European governments have disregarded it. These are important words that finally clarify what the M5s is repeating. for days. Until yesterday everyone said that the commitment with NATO to reach 2% by 2024 could not be discussed, especially now with the war in Europe, because Italy’s credibility was at stake. Today finally we can all to agree, thanks to the M5s, that this objective is a trend and must be graduated well beyond 2024, in terms compatible with our public finance framework and with our economic and social priorities “.
Still on the same theme, Draghi explained: “In the Def there is no indication of military expenses or other expenses, it is an overall document. To date there is absolutely no problem. Italy’s commitment to spend 2% for investments in defense was taken in 2014 and has been reiterated by all governments, every year. From 2018 to 2021, spending increased between 17 and 26%. The commitment is simply to confirm what was done previously, and confirm the our commitments with NATO “.
During the question time in the Senate, Guerini stated that the adoption of the strategic compass by the European Council last week represents “a fundamental step, I would even say historic along the way to reach the ambitious goal of a foreign policy and of common defense, which allows an autonomous strategic across the board. The document marks an authentic watershed in terms of collective security and provides for a substantial series of measures to be implemented by the deadlines set from today until 2031, which pertain to four well-defined areas : ability to act in crisis prevention and management contexts; ability to protect; investments in terms of joint capacity development within the EU; and the strengthening of partnership relations. ”
“The Italian Defense”, continued the minister, “will have to take up the challenge of functional community integration, both by strengthening Italy in the initiatives of the European Defense Fund, and by pursuing full civil and military integration in the field of research” he said. continued the minister. “Every single initiative must be brought back in the perspective of this community integration if we want to confirm ourselves as credible and reliable actors in a credible and reliable Europe, aware of the responsibilities that derive from the international scenario in which we find ourselves and that especially in the current historical moment we are called to hire us “. (All rights reserved)
