(Finance) – Banca Akros has coverage started on the title of ABP Nocivelli, a company listed on Euronext Growth Milan and specialized in the construction of technological systems and Facility Management services. The target price was set at € 5.7 per share (for a potential upside of about 48%), while the opinion on the stock is “Buy“. Analysts point out that the company leverages” a solid know-how acquired over the last 60 years “which also includes the promotion of PPP (Public Private Partnership) projects, which include the construction of hospitals and the supply of energy and facility management services In addition to a portfolio of contracts described as “very resilient and highly profitable”the group could also exploit the opportunities deriving from PNRR, in particular those focused on the enhancement of health care and renovation from the point of view of the energy efficiency of public buildings.
Among the strengths reported is the fact that ABP’s business is primarily based medium-long term agreements with public administrations relating to the supply of energy, an activity that “involves a very low counterparty risk and is well hedged against inflation” since the commissions are periodically adjusted on the basis of ARERA tariffs. It is emphasized that, despite the predetermined duration of the contracts with the PA, the group “boasts a very high loyalty rate” and that ABP also participates in PPP initiatives (Public-Private Partnerships), whose profitability is not high but are the “bridgehead towards directly connected service contracts”.
Among the weaknesses are the small size compared to the competition and the country riskas the operations are concentrated in Italy.
Banca Akros expects the company to close fiscal year 2021/2022 with revenues for 65 million euros, a EBITDA of 13.8 million euros and a Net income of € 9.6 million. These values should rise in 2022/2023, respectively, to 87 million euros, 14.4 million euros and 10 million euros. The forecasts are also for an increase in 2023/2024 in revenues of 88 million euros, an EBITDA of 14.8 million euros and a net profit of 10.3 million euros.