(Finance) – EnVent Italia SIM increased a 6.90 euros per share (from the previous 5.90 euros) the target price on Direct SIMa company active in online trading and listed on Euronext Growth Milan, maintaining the judgment on the title to “Outperform” given the potential upside of 68%, after the release of the half-yearly report.
Analysts point out that, in the last 6 months, the title Directa had one better performance than the marketgaining 10% against -1% of the Italia Growth index. After a peak of 4.15 euros in May 2024, the stock showed a normalization trend oscillating in the 3.50-3.60 euro range. Then, since the disclosure of the KPIs for the first half of 2024 in mid-July, a bullish trend has begun.
After a strong half-year, considering management’s guidance for the year of around 15 million euros of EBT, EnVent has increased estimates for the 2024-26 period. Net fees and net interest income for 2024 were increased by 9% and 24%, respectively, leading to an EBT increase of 42% and a bottom line increase of 44%. Overall, the revised estimates point to net profit increases of 33% and 20% for 2025-26. Also, note that thebuyback option (4 million euros or 5% market capitalization) could provide downside protectionespecially considering that Directa shares have been traded for around 16 million euros in value since the beginning of the year.
“The half-yearly results underline a growing trend in operational performance that has lasted for four years – we read in the research – We believe that the needs of tax and regulatory compliance give Directa a significant competitive advantage compared to potential foreign entrants. Furthermore, the compromise between return on investment and capital strength makes Directa an interesting investment option.”