(Finance) – TP ICAP Midcap raised the target price (to 7.1 euros per share from 6.5 euros) and confirmed on judgment (Buy) on eVISOa company listed on Euronext Growth Milan which has developed an artificial intelligence platform for trading physical commodities, given the potential upside of 39%.
Analysts point out that the EBITDA margin of major electricity retailers is low and the cost of financing will remain high as long as the central bank maintains high interest rates. In a market context where the average level of debt compared to competitors’ sales is 58% and the average cost of financing is 5%, eVISO has no financial debt and benefits from a significant competitive advantage which allows it to present better results than its competitors.
TP ICAP Midcap has improved working capital management estimates, thus increasing the net financial position at the end of the year to 12 million euros “cash” (compared to the previous 8.7 million euros). Furthermore, the favorable market conditions also favored comparable companies and consequently the related valuation multiples.