(Finance) – Intesa Sanpaolo he confirmed target price (10.5 euros per share, potential upside of 20%) e recommendation (Buy) on the title ErreDuea company listed on Euronext Growth Milan and active in the field of electrolysers for the generation of clean hydrogen, after the publication of the results for the first half of 2024.
Analysts say that i interim results show a softening of core revenues and profitability margin (-2% year-on-year and EBITDA margin of 25.7%), mainly due to the shift in delivery of some orders to the second half and a slowdown in traditional gases, which suffered from the weakening of industrial production. The order book recorded a notable acceleration of 69%, with further progress achieved during the summer. The NFP remained solid.
The company does not release precise quantitative guidance FY24-25; however, confirms that the objective is to expand the production unit before the end of 2025. Given the current difficult macroeconomic conditions which could prolong the negative impact on Oxygen/Nitrogen revenues, Intesa revises core revenues 2024-25 respectively of 6% and 7%, with a corresponding 2024-25 EBITDA reduction of 17% and 20%due to negative operating leverage. The new 2025 core revenue estimate is covered by over 55% by the current portfolio.