Emak, Intermonte lowers target price and confirms Outperform

Emak Intermonte lowers target price and confirms Outperform

(Tiper Stock Exchange) – Intermonte he lowered to 1.70 euros per share (from 1.80 euros) the target price on Emaka company listed on Euronext STAR Milan and active in the outdoor power equipment, pumps and water jetting sectors, and maintained its judgment on the title to “OutperformThe recommendation revision came after the company reported second-quarter 2023 results, which analysts described as in line with estimates.

In light of the trends that emerged from the first half of the year and management’s indications, Intermonte revised the estimates to incorporate weaker turnover trends but higher margins, with consequent substantial confirmation of the EBITDA estimates. In the future, higher D&A and finance charges will push the broker to cut Adjusted EPS estimates of 8% on average over the three-year period.

“Although I short-term scenario remains volatilewe maintain a positive attitude on the stock as we believe that the investments in product innovation made in recent years will allow the company to offer the market a complete range of products and therefore potentially gain market share”, we read in the research.

It is noted that, even after the cut in estimates implemented and the downward revision of the target price, the current assessment remains “very undemanding“.

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