(Finance) – Equity he lowered to 8.5 euros per share (from the previous 10.5 euros) the target price on Aristonlisted on Euronext Milan and active in renewable and high-efficiency solutions for water and space heating, confirming the recommendation “Buy” on the title. The revision of the rating came before the release of the data for the third quarter of 2023, which the company will publish on November 7th.
Analysts have revised their FY23 estimates, reducing organic sales projections from +0.8% to -1.7% with FX from -1% to -1.5%, while on Adjusted EBIT the change is -1 .5% to 325 million euros. On FY24 they made more pervasive changes including a more cautious outlook on the evolution of the heat pump business: overall they reduced sales estimates by -7%, Adjusted EBIT by -15% and Adjusted EPS by -17%.
“We believe that the market (stock down more than 35% YTD) has more than anticipated/incorporated the slowdown in business/less positive newsflow on the second half and 2024, with a company that is dealing in compressed multiples that do not reflect good geographic/technological/product diversity and leadership in different markets,” the research reads.