(Finance) – TP ICAP Midcap lowered to 4.7 euros per share (from the previous 4.8 euros) the target price on the title Dear Mosconia group listed on Euronext Growth Milan and active in the luxury fashion market offering design, transformation, printing and customization services of fabrics, confirming the judgment to “Buy” given the potential upside of 39%.
Analysts write that the results of the first half of the year showed, as expected, a more limited growth after a record year during which Gentili Mosconi outperformed the trajectory of the personal luxury goods market. Profitability is increasing beyond expectations, supported by a better mix and a progressive reduction in production costs. The sector prospects remain uncertain waiting for the recovery of consumption in China.
TP ICAP Midcap has confirmed the revenue estimate for the end of 2023, equal to 55.9 million euros, awaiting greater visibility in the second half of the year. On the other hand, given the strong operating performance of the first half, it has revised upwards the EBITDA margin forecasts adjusted for 2023 to 18% (compared to 16.6% previously), confident in the group’s ability to continue to benefit from high pricing power, a more profitable mix and a progressive reduction in production costs. The margin estimate remains cautiously lower in FY compared to 19.9% in H1, given the limited visibility on volumes for the months ahead.