ENAV, Equita increases target price and confirms Buy

ENAV Equita increases target price and confirms Buy

(Finance) – Equity has increased a 4.6 euros per share (from the previous 4.5 euros) the target price on ENAVa company that manages civil air traffic in Italy and listed on Euronext Milan, confirming the recommendationBuy” on the title.
Analysts have revised upwards the 2024 estimates (EBITDA +6% and EPS +8% vs. previous estimates) following the FY23 results and the management presentation, aligning with the company’s guidance. Instead, they left the 2025-26 estimates substantially unchanged, also considering valid the assumptions on the new RP4 regulatory period starting in 2025. The DPS estimates imply a average yield of over 7% in the period 2024-26.

Regarding the operations of BUTthe indication of 250 million euros of firepower which would bring in over 100 million euros in revenues does not refer to any specific operation; at the moment the management is in an embryonic phase of analyzing various opportunities (in various segments, including those of SW for the aviation world, cybersecurity, airport management and others), but without having carried out any in-depth due diligence or offers preliminaries.

Any M&A will follow the logic of creating value for shareholders, looking at business “EPS accretive” and where ENAV can actively contribute with its know-how and skills; no other evaluation parameters were indicated (such as IRR, M&A multiples, etc.). Any M&A deals would be carried out taking control of target companieswithout considering minority investments.

tlb-finance