(Finance) – Kepler Cheuvreux confirmed target price (to 5.0 euros per share) And recommendation (to Buy) on Ferrettian Italian multinational active in the shipbuilding sector, in view of the publication of the main data for the first quarter of 2024 on May 16th.
Analysts expect progress at P&L level, very much in line with the guidelines for the year. In detail, they expect an increase in revenues close to 10% on an annual basis and an EBITDA margin growing by 110 basis points to 15.4%, mainly thanks to the mix and better absorption of fixed costs.
Furthermore, the broker expects that the normalization of continuous collection: sees a collection of new orders amounting to 280 million euros (or -9% on an annual basis on a still difficult comparison), including the sale of a 70 million CRN superyacht reported by the specialized press. The net order book is expected to be around €830 million, around €30 million less than the YE 2023 level.
Also there net financial position should decrease compared to YE 2023 levels (approximately -30 million), due to a certain absorption of working capital and the high capex dedicated to the new Ravenna plant.
Overall, a good start to the year supports the Buy, with Kepler Cheuvreux underlining that Ferretti is still exchanged at a discount high-double-digit vs Saint Lawrence.