(Finance) – Intermonte has increased a 5.80 euros per share (from 4.80 euros) the target price on Civitanavi Systemsa group listed on Euronext Milan and active in the field of inertial navigation and stabilization systems, confirming the recommendation on the title to “Buy” after the company reported “better than expected” 2023 results.
Analysts write that management did not provide guidance for the year, but it provided a series of positive updates. The current market environment is particularly favorable for a European-based equipment manufacturer. In 2023 Civitanavi started working with 12 new customers, a qualitative measure that gives the idea of constantly growing brand recognition.
Intermonte’s FY24 and FY25 estimates already appear consistent with management’s comments. Management provided no guidance at this time, but said the company is off to a good start in 1Q24. The 2023 EBITDA margin of 29% appears sustainable for the future.
“4Q23 revenues were better than expected and have the trend of improvement in engineering services, an important driver for margins, was confirmed – we read in the research – We remain positive on the stock, raising our target price thanks to the drop in the risk-free rate (-0.5%) and the roll-over of the one-year forward valuation. We believe Civitanavi is well positioned to capture growth, especially in the global defense market, driven by rising military spending and growing demand for ITAR-free procurement.”