Spain has decided to rearm and for the moment there is a company that is benefiting from it: Indra

Morgan Stanley has raised the target price of indra 118%up to 47 euros, turning the Spanish technology into its most optimistic commitment to the sector.

The reason has a lot to do with its change in strategy. Although Indra has a long time in defense, lately it has redoubled efforts.

Why is it important. The American bank sees in Indra “the hidden European defense champion, a company that has made its military business grow 25% in the last two years With 18% margins. Its transformation of software company to the defense giant is working.

• “European champion” is business jargon to refer to a leading company in its sector at European level that also competes worldwide.

The context. The Ukraine conflict began to change the rules. Europe will allocate more than 11,000 million euros only in drones, according to Indra estimates.

NATO has set as a goal Raise defense expenditure up to 5% of GDP In 2035, against current 2%. Something that has put on the agenda The negative of Spain In recent days in front of Repliations announced by the United States.

Yes, but. Spain has adhered to the NATO plan, but the aforementioned negative of the Spanish government shields that 2.1% of GDP “is sufficient.” Well below the ambitions of its European partners.

In detail. The turning point marks it The creation of the Fourth Divisioncalled Indra Weapon & Ammunition, without ambiguities.

It joins the other three divisions:

• Indramind (AI).
• Indra Land Vehicles (land vehicles).
• Indra Space (satellites).

Together they make up a military ecosystem that covers from drones to laser systems.

Between the lines. The bet goes beyond the conjunctural opportunism. Indra is building capabilities that Spain did not have, from guidance systems to unmanned weapons through directed energy.

Its president, Ángel Escribano, recognized that “high foreign dependence” explains why the State has chosen Indra as its industrial armed arm.

And now what. Morgan Stanley has projected that the defense and aerospace sectors represent two thirds of Indra Ebitda in 2026.

AND Indra is already exploring the opening of an office in kyivunequivocal sign that he sees in Ukrainian reconstruction a lasting opportunity.

Outstanding image | Indra

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