Stock up 2.31% (Il Sole 24 Ore Radiocor) - Milan, 15 Jul - Shares of the Italian defence and aerospace group Leonardo were higher in Milan trade, after analysts at Mediobanca increased their target price to 28 euros and reiterated its outperform rating on the stock.

At 1145 GMT, Leonardo shares were up 2.31% to 23.47 euros, outperforming the benchmark FTSE MIB index, which was down 0.18% at 34,517.37 points.

In a report, Mediobanca analysts highlighted the unprecedented increase in defence budgets in 2023, with spending continuing to increase to meet the NATO alliance objective of 2% of GDP.

Mediobanca expects this will create a significant opportunity for EU defence contractors, and in particular for Leonardo. On average, Mediobanca has increased its revenue forecasts for Leonardo by an average 3% in fiscal years 2026-2028.

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(RADIOCOR) 15-07-24 12:59:04 (0303) 5 NNNN