(Finance) – The analysts of Barclays they cut to 8 euros per share (from the previous 9 euros, -11%) the target price on Aristona group listed on Euronext Milan and active in renewable and high-efficiency solutions for water and space heating, confirming the recommendation “Overweight” on the title. The revision came as part of a report on the Capital Goods sector.
It is reported that Ariston stock has been influenced by a consistently negative news flow on the heat pump market (e.g. the Italian super-bonus system) and by a cut to guidance. Now, at 10x XP the market discounts zero growth and declining margins, which “seem excessive” given the replacement-oriented market and approximately 20% exposure to heat pumps.
L’upside for the stock it is represented by a faster than expected adoption of heat pumps, combined with fears of an easing of price deflation, resulting in an increase in EPS and a re-rating. On the contrary, the downside it’s a slower-than-expected adoption of heat pumps, combined with price deflation leading to lower EPS and a de-rating.