(Finance) – Integrae SIM has coverage started on the title iVision Tech, PMI active in the design and production of eyeglasses and sunglasses frames. The target price was set at 3.90 euros per share (with a potential upside of 139%), while the judgment on the title is “BuyThe company was listed on Euronext Growth Milan (EGM) on 3 August with a placement price of €1.15 per share.
Analysts expect an increase of production value which, according to their estimates, will go from 10.58 million euros in 2022 to 27.20 million euros in 2026 (CAGR 22-26 of 26.6%). Furthermore, they estimate an increase in theAdjusted EBITDA from 0.66 million euros in 2022 to 6.1 million euros in 2026. This improvement in absolute values of EBITDA will lead in parallel to an improvement inAdjusted EBITDA marginwhich will go from 6.3% in 2022 to 22.4% in 2026.
Finally, they believe that society can improve their own NFP in the years after 2022 thanks to the positive cash flows generated by core business following the increase in turnover. In particular, they estimate that the NFP could reach a positive cash value in 2026 of 3.3 million euros.
Between strengths of the company the following are mentioned: strong industrial automation; competitive lead time; Made in Italy precision and quality; highly specialized workforce with many years of experience in the luxury eyewear sector; integrated production process for ready-to-wear eyewear (from design to complete eyewear); primary standing contracts with well-known luxury brands; experienced and consolidated top management; strategic distance from the eyewear hub located in the Veneto region as it allows for the retention of employees.
The opportunity indicated are: growing reference market; collaborations with brands outside the fashion sector; development of a proprietary brand with high visibility and recognition; development of innovative eyewear products; shortening the sales chain (B2C); adoption of green energy policies in order to improve the sustainability of the product and to reduce (and possibly reuse) the relative waste; increase in CVS (Computer Vision Syndrome) cases with consequent increase in sales of anti-fatigue lenses.
The major weaknesses they are: difficulty in finding personnel with expertise in the sector in the Friuli-Venezia Giulia area; non-integral exploitation of the production capacity of the plants.
Furthermore, i higher market risks are: aggregation and internalisation of production activities by larger operators; technological obsolescence; increase in the price of raw materials; possible difficulty in finding materials and components due to the presence of a few players in the sector who purchase large quantities of raw materials.