(Finance) – Equity has lowered the target price on Sabafa company listed on Euronext STAR Milan and active in the production of components for household appliances, for 28 euros (from 31 euros) and has cut the judgement on the stock to “Hold” from “Buy”. The review came after the Board approved and disclosed the interim management report as of December 31, 2021. The analysts note that the results of the fourth quarter 2021 they showed better than expected revenues, but lower and below expectations EBITDA due to extraordinary energy costs. Equita confirmed the 2022 revenue estimate e reduced EBITDA margin forecast 80bps to 19% (-160bps from 2021) to reflect higher energy costs (more difficult to pass on to customers) and some cost increases for the start-up of new plants in India and Mexico.
“After a strong run (of the stock, ed), we now see a more balanced risk / return scenario for Sabaf”, say the analysts. “We stay confident in strategic driverswith revenue synergies and new capacity arriving in 2022 and further merger and acquisition opportunities to support medium-term prospects – they add – We are instead more concerned about market demand for the second half of 2021 and 2023as higher interest rates and the end of Covid restrictions could impact the housing market and related consumer spending. “
On a bad day for the market overall, the stock was particularly hit by sales. Sabaf archived the session in showing a loss of 6.91% on the previous values, amounting to € 22.9 per share.