ROME, March 12 Reuters Italy39;s Leonardo will invest in digitalisation, artificial intelligence and interconnected platforms over the next five years as it focuses on security activities, the defence group said on Tuesday.

The world geopolitical scenario calls for a new global security paradigm, where we aim to play a proactive role in the evolution of the European defence sector, Chief Executive Roberto Cingolani said in a statement.

Presenting its 20242028 industrial plan, Leonardo said it would strengthen its core businesses helicopters, electronics and aircraft while also leveraging opportunities in cybersecurity and space sectors seen as key to defence in the future.

Shares in Leonardo rose as much as 6.8 on Tuesday morning as analysts welcomed the profit and cash flow forecasts in the plan. The shares are up some 40 so far this year in what is a buoyant market for defence stocks.

J.P. Morgan said the market would respond positively to the strategy given that guidance had been provided for each one of the five years of the plan, unusual for most companies and shows real accountability.

A former government minister who became CEO last May, Cingolani has been pushing for alliances with other defence groups in Europe, to take advantage of the bloc39;s rising military budgets, in a more efficient and less fragmented way.

Growth through MA, not included in the plan, will further boost the group, with the expansion of the alliance policy and possible targeted…