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Leonardo DRS seen as a buy amid strong defense demand and attractive valuation with 13-20% upside.

Analyst Insights
04 Jul 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Leonardo DRS is recommended as a buy due to strong demand in radar, power management, and defense electronics driven by a multi-domain defense supercycle. The company benefits from expanding defense budgets and increased sensor use across naval, air, and land domains. Its valuation is attractive with a potential 13-20% upside supported by EBITDA margin growth, strong free cash flow, and a net cash position. Additional gains could come from share buybacks and valuation multiple expansion relative to aerospace and defense peers.

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