(Finance) – EnVent Italia SIM ha coverage began on the title Adventurea company listed on Euronext Growth Milan and active in the sector of price comparison for gas and electricity, telephony and insurance. The target price was set at 9.00 euros per share (for a potential downside of 44%), while the rating on the stock is “Underperform“.
Analysts recall that after the IPO in August 2024 at an offering price of 2.00 euros per share, the Adventure share price had “a surprising surge“, up to a value equal to 15 times the turnover and 70 times the operating profit, according to estimates for 2024. So the price has fluctuated from the maximum of 24 euros to a minimum of 13 euros and is currently 16 euros. The value area indicated by EnVent, evaluated through the 2024-27 estimates of turnover and profitability growth, is between 5.9 and 10.3 euros per share.
In the valuation process EnVent followed a probabilistic approach, which would consider a higher probability for lower values and a lower probability for higher values, as calculated from riskier assumptions. According to the probabilistic approach, further price increases or a continuation of the current level of market capitalization, which would widen or freeze the gap from the values calculated on the fundamentals, they should not be considered a judicious medium/long-term trendat least with the current set of information and company perspectives.
Envent’s value area, the purpose of which is to be a narrower perspective of Adventure’s value in view of its performance expectations and duly considering its risk-opportunity profile, should represent a higher probability among the possible sets of results.