(Telestock) – Mediobanca he confirmed target price (to 10 euros for action) and recommendation (Neutral) on Unieuroa company listed on Euronext STAR Milan and active in the distribution of consumer electronics and household appliances in Italy, after the approval of the interim management report at 31 May 2024 for the financial year ending on 28 February 2025. This is typically the lightest quarter of the year due to the seasonality of the business.
Analysts write that Unieuro’s first quarter results have once again confirmed a overall challenging scenario in terms of volumes in the reference market, burdened by the modest purchasing power of Italian families. However, management stressed that the gradual recovery of the market should start from the second half of the year. On the other hand, profitability has further demonstrated resilience, supported by a cautious cost control strategy and actions aimed at improving the gross margin in a context of rising personnel costs.
Furthermore, analysts acknowledge the the company’s M&A firepowerwhich could pave the way for further consolidation of a still fragmented market or for the expansion of Unieuro’s offering in the Services business.