Renta 4 | Indra (IDR) Land Vehicles and IDV, a division of the Italian company Leonardo, have signed a strategic agreement to develop the new amphibious combat vehicle for the Royal Marines.
The agreement is designed to fulfil the Special Modernisation Programmes assigned to Indra.
Indra will deliver four variants of the vehicle: troop transport, command and control, recovery and ambulance.
Assessment: We view favourably the agreement between two of Europe’s leading defence companies. We believe this alliance will be long-term given the strong momentum in expected European defence spending and comes on top of the one Indra recently signed with Rheinmetall, another of the sector’s major companies in Europe. Target price €58 per share. Overweight.
