(Finance) – The decomposed reaction of the title Intercosa group active in the cosmetics sector and listed on Euronext Milan, was exaggerated and thelong-term attractiveness of the business model remains intact, while recent weakness in equities could be a buying opportunity. This was stated by the analysts of Berenberg in a note in which they reiterate the “Buy” recommendation and the price target of 20 euros per share. The share went from 15.98 euros on 3 August to 14.62 euros on 4 August, remaining at these levels for subsequent sessions.
“While sales and EBITDA were above expectations, the management guidance for an absolute level of EBITDA in the second half in line with that of the second half of 2022 ha triggered the concerns of investors, leading the shares to fall 8.5% the day after” the accounts, the report reads.
Berenberg considers this reaction exaggerated since: the results showed how the business diversification of Intercos have enabled the company to mitigate a number of industry macro trends, from a weaker performance of premium brands to a slower than expected recovery of the Chinese market ; the consensus on second half EBITDA already did not expect any year-over-year acceleration.
Analysts have slightly raised sales growth expectations for the second half, maintaining the EBITDA estimate. For 2023, they now forecast sales of €964 million and adjusted EBITDA of €140 million, implying a margin of 14.6%.