(Finance) – Integrae SIM has coverage started on the title Wells Milan, a group that operates in the table art sector creating medium-high level “Themed Tableware” collections and gift items with the EasyLife proprietary brand on the market for over 15 years. The company was listed on July 19, 2022 on Euronext Growth Milan (EGM) with a placement price of € 0.50 per share. The target price was set at € 1.50 per share (with a potential upside of over 55%), while the judgement on the title is “Buy“. Integrae SIM is Euronext Growth Advisor for the company and was Global Coordinator of the placement functional to the listing.
Analysts expect the production value, which is expected to rise from € 18.11 million in 2021 to € 35 million in 2025 (2021-2025 CAGR of 17.7%). L’EBITDA is seen growing from 1.47 million euros in 2021 to 4.95 million euros in 2025, for a EBITDA margin which will grow from 8.1% to 14.1% in 2025. They believe the company can improve its own NFP thanks to the positive cash flows generated by the progressive increase in turnover and margins. In particular, they estimate that the NFP can reach a positive cash value in 2025 equal to 5.66 million euros.
Between strengths of the company are cited: product offer line with a great impact on creativity; lean and consolidated business model; long-term strategic partnerships with the main suppliers in the sector and customer loyalty and sales network; wide range of products in continuous evolution; significant export share in growth; expansion of the market with the Pozzi brand in all its forms.
The chance indicated are: market trend in constant growth; great potential of the mono-brand and multi-brand e-commerce sector; change post Covid habits that lead to higher spending on tableware; obtaining Gamma Economies through M&A; expansion of the range towards products with a focus on sustainability; expansion of the range for the Ho.Re.Ca. market
Between weaknesses there are: traditional shop in the phase of concentration and reduction; monitoring of sales and digital data to be improved; very low e-commerce volumes; small company size compared to large international groups.
Furthermore, i risks from the market they are: difficulty in finding qualified resources from a technical and creative point of view in the sector; presence of large international players and a sector that tends to concentrate; macroeconomic scenarios with a strong impact on the sector such as an increase in transport, raw materials, energy costs.