Turbo Certificate

Leonardo at the top of the Ftse Mib. Does the rally start again? Analysts' targets

Leonardo at the top of the Ftse Mib thanks to the strategic alliance with KNDS, born from the merger of Krauss-Maffei Wegmann and Nexter.
This partnership, agreed with the Italian Ministry of Defense, aims at the formation of a European Defense Group, with a specific focus on land electronics and the development of armored vehicles.
The news triggered a jump in the stock on Piazza Affari at the end, with an increase of 4.26% to 14.43 euros.
The agreement, aimed at consolidating the industrial bases and developing new platforms for armored vehicles such as the MGCS, aligns with the strategy of the Italian Ministry of Defense, led by Guido Crosetto, in the 2023-2025 Programmatic Document and in the action plan of the agreement recently stipulated between Rome and Berlin.
Leonardo is exploring further opportunities with KNDS, not ruling out an extension of the agreement also on capital.
The collaboration includes joint programs between Italy and Germany, such as the acquisition by the Italian Army of approximately 400 Leopard 2 heavy tanks, with a total investment of 8.24 billion euros, and participation in the Italian AICS (Armored Infantry Combat System), valued overall at around 15 billion euros.
The alliance between Italy and Germany, which also indirectly involves France, represents an important step towards European consolidation.
This process is focused on the development of multilateral programs, such as the Main Ground Combat System (MGCS), and on European initiatives for the creation of Main Battle Tank (MBT), Infantry Fighting Vehicle (IFV), and new generation artillery systems.
Banca Akros has assigned a "buy" rating to Leonardo with a target price of 18 euros.
Leonardo: operational strategies with UniCredit Turbo Certificates From a graphic point of view, Leonardo moves decisively away from the supports in the 13.50 area, aiming for a comparison with the November highs of around 15 euros.
A victory even on this limit would allow prices to reach the upper side of the channel that rises from the lows of November 2022 at 15.35 and to look at more ambitious targets of 16 euros, a record of 2017.
Below 13.50 euros the prospects in the very short term they could turn negative anticipating drops towards 13.12, for the closing of the gap on 9 October, and up to the static support at 12.80.
To trade long on Leonardo it might make sense to use a Unicredit Turbo Open End certificate with ISIN DE000HC84G10.
The certificate has Leonardo as its underlying and has a barrier currently at 19.97%.
To operate Short, however, it may be appropriate to use Unicredit's Turbo Open End Short certificate with ISIN DE000HD0QF25, having a barrier 17.80% away and Leonardo as the underlying.
We remind you that this barrier corresponds to a real stop loss, intrinsic to the product, upon touching which the position is automatically closed.
Furthermore, Unicredit's Turbo Open End certificates eliminate the problem of the investment time limit without maintaining the presence of the annoying compounding effect.
However, they are complex financial instruments: for trading operations it is important to set a stop loss based on your needs and the right money management rules.
Discover all UniCredit Turbo certificates

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