(Tiper Stock Exchange) – Equity has lowered slightly to 2.5 euros per share (from 2.6 euros) the target price on Cairo communicationa company listed on Euronext STAR Milan and leader of a group of companies operating in the publishing sector, confirming the recommendation “Buy” on the stock. The review of the judgment came after the release of the results for the second quarter of 2023, overall in line with expectations.
After the accounts, analysts have finalized the estimate on EBITDA adj. to 163 million euros (ie +2% y/y or -1% compared to previous estimates). With regard to RCS extension, reduced 2023/24 EBITDA from 137/135 million euros to 135/134 million euros. They expect Spain to confirm its resilience in 2023/24 (EBITDA cagr at 7%) thanks to the growth potential in international markets for Marca.
Equita confirms its positive position on the stock because: the adv. division & Sports of RCS (EBITDA cagr 2019-22 of +14%) has an interesting growth potential in the medium term, thanks primarily to the Giro d’Italia; there Spain recorded an EBITDA of +9% in 2022 and expects further growth of an average of 7% in 2023-24 thanks to the expansion of Marca’s international digital edition; The title is cheap with an EV/EBITDAaL 2023E of around 3x, a PE of 6x and a dvd yield of 8m4%, which is a good support especially in a scenario of possible normalization of interest rates.
(Photo: Pexels/Pixabay)