(Finance) – Intesa Sanpaolo has reduced to 1.00 euros per share (from the previous 1.20 euros) the target price on Eurotecha company listed on Euronext STAR Milan that designs, develops and supplies Edge Computers and solutions for the Internet of Things (IoT), confirming the recommendation “Hold” despite a potential upside of 28%.
Analysts write that in 9M 2024, management improved gross margin and achieved its 2025 goal of reducing operating costs by 4 million euros compared to 2023. However, the Industry and company specifics continue to influence order intake and revenues, although management indicates a likely recovery in 2025 thanks to renewed interest in AIoT projects.
“Considering the ongoing weakness of the Industrial Automation (IA) segment, as well as the potential volatility related to the announced capital increasewe confirm our neutral position on the stock”, reads the research.