(Tiper Stock Exchange) – Intesa Sanpaolo has lowered to 1.45 euros per share (from 1.55 euros) his target price on Aeffea luxury company that operates both in the pret-a-porter sector and in the footwear and leather goods sector, confirming the judgment on the title to “hold“. Analysts revised their recommendation after the publication of the preliminary results for 2022, which closed with revenues of 352 million euros, compared to 324.6 million euros in 2021 (+8.4% at exchange rates current exchange rates, +7.7% at constant exchange rates).
The broker believes that the higher-than-expected outage in China in Q4 22 impacted profitability and cash flow. Therefore, it reduced its 2022 EBITDA forecast by 4.9% to EUR 34.4 million, equal to an EBITDA margin at 9.8% (compared to the previous 10.2%, -110 basis points year over year) and increased net debt from 120.5 million euros to 126 million euros.
Emphasizing that the management decided to favor the quality of sales and optimize wholesale in a complex macro scenario, Intesa Sanpaolo reduced its forecast sales for 2023 by 2.6% (now assumed to increase by 2.5% year-on-year to 361 million euros), but left the sales assumption unchanged to 400 million euros in 2024, when the group should benefit from the full take-off of Moschino Kids and M05CH1N0 JEANS.
Furthermore, it assumes a flat EBITDA margin in 2023 with a recovery to 11% only in 2024, when there should also be some savings due to the simplification of the structure of the group.