(Finance) – Kepler Cheuvreux has Covering started on the title Icopsubsoil engineering company listed on Euronext Growth Milan and among the main European operators in the micro -syneling and special foundations, with a recommendation “Buy“And a target price of 10.80 euros for action (potential Upside of 35%).
According to analysts, Icop has chosen the right time to listen to the stock exchange. After ensuring a huge backlog that offers high visibility in the next two years and having pursued a commercial pipeline with a high probability of being converted into new orders, in July 2024 he collected 30 million euros in new capital to finance an agreement transformative. The M&A in the United States would mark the entry of Icop into one of the largest and most dynamic infrastructure markets in the world, supported by its over 50 years of experience in specialized underground engineering work. “So far, the company has kept its promises, testifying to the solid opportunities for autonomous growth, supported by enormous investments in electricity networks and gas networks in Italy and Europe”, reads the research.
The already insured contracts offer high visibility until 2026. Kepler provides that i revenues they will rise from 112 million euros in 2023 to around 420 million euros in 2026, while theEbitda It is intended to reach around 60 million euros in 2026 (a 62%CAGR 2023-26) with a more than proportional growth of theEbit (+155%) and ofnet profit (+94%). In particular, it highlights the strong financial lever at the Ebit level, since the company had already increased its basis of equipment to meet the intake of orders, thus reducing the need for further capex and related D&A.
In elaborating its growth strategy, ICOP management has clearly indicated that the M&A in the US market is one of the main reasons of the IPO. Originally, the goal was a deep foundation company with annual revenues of around 20-30 million euros and an Ebitda margin of about 15-20%. In fact, ICOP intends to enter the US market by drawing on the skills of a qualified local management, gradually expanding the range of activities and subsequently introducing the microTunnelling activity. However, Kepler understands that the potential target could now be a larger society. Based on a prudent approach, estimates that an acquisition in the United States could result in an increase of 1.2-2.8 euros per share, which implies a rise of 13-37% compared to current market prices.