(Finance) – TP ICAP Midcap has coverage started on the title eVISO, a company listed on Euronext Growth Milan which has developed an artificial intelligence platform for trading physical commodities. Judgment is Buywhile the target price was set at 3.6 euros per share (for a potential upside of 43%).
Analysts point out that in the span of 10 years eVISO has entered one of the most competitive and saturated markets (electricity in Italy) and has signed contracts for the supply of up to 0.3% of the country’s electricity. The proprietary artificial intelligence tools of eVISO have made it possible to register a attrition rate well below market levels (4% vs. 16% for the market) and limited working capital in the most difficult tariff context of the last decade.
From June 2020 to June 2022 the BU dedicated to resellers (active throughout the country) went from 57GWh to 380GWh supplied and the direct channel reached another 247GWh.
“In terms of technological potential, the company has the ability to sustain massive growth, currently held back by a market context that is not very favorable to non-manufacturing resellers – reads the research – Its commercial strategy allows it to optimize the levels of margins generated by the POD through the acquisition of low-consumption customers. From the second half of 2023, we believe that energy feedstock costs will start to decline and the customer mix would allow for a improvement of the EBITDA margin (which will be down this year).”