Indra shares climb after Morgan Stanley upgrades stock, lifts target price

Indra shares climb after Morgan Stanley upgrades stock, lifts target price

US concludes third round of strikes against Iran after Trump reinstates blockade Investing.com -- Indra A (LON:0HA9) shares rose more than 3% on Tuesday after Morgan Stanley upgraded the Spanish defense and technology company to Overweight from Equal-weight, saying investors are underestimating the earnings boost from Spain’s expanding defense spending. The stock gained 3.2% to €48.38, outperforming the broader European market. Morgan Stanley raised its price target to €70 from €60, implying roughly 50% upside from Monday’s closing price, as it expects Indra to benefit from a multi-year increase in Spanish military procurement.

The brokerage said Spain’s defense equipment spending could nearly double by 2030 as the government ramps up its modernization program, creating a favorable backdrop for Indra’s defense business. It expects the division to become the group’s largest by revenue by the end of the decade and forecasts earnings in 2030 about 13% above Wall Street expectations. Morgan Stanley also said Indra could achieve its target of about €10 billion in revenue and a 12% EBIT margin as early as 2029, a year ahead of management’s current goal, while additional acquisitions could provide further upside.

The bank identified upcoming second-quarter earnings on July 23, the company’s capital markets day later this year, and continued execution of Spain’s defense modernization program as the next potential catalysts.