(Finance) – TP ICAP Midcap has confirmed The Buy on Italian Wine Brands (IWB), wine group listed on Euronext Growth Milan, e lowered The target price to 43.3 euros per share (from 49.6 euros). The revision of the recommendation comes after the company announced that it closed 2022 with pro-forma consolidated revenues of 430.4 million euros (+5.2% on 2021).
Analysts point out that 2022 was characterized by strong inflationary pressures on all production factors (such as bulk wine, glass, energy) and from difficulties related to shortage of raw materials (especially glass). These factors affected the group’s volumes and margins.
Given these trends, TP ICAP Midcap prefers stay cautiousadjusting the revenue estimate for 2022 to 387 million euros (vs. 411 million previously estimated) and EBITDA to 32 million euros (vs. 36 million), with a margin of 8.2% (vs. 8.7%).
“However, we believe that the contribution of the two acquisitions it will become again more evident in 2023allowing the group to increase volumes, and above all margins, by exploiting all the potential of Enovation in the US market and of Barbanera with its fine Tuscan wines”, reads a note.
They confirm the Buy, adding that “the group’s acquisitions and strategic choices make us predict a year of transitionbut still solid, with strong prospects for the future”.
(Photo: Courtesy of the Consorzio del Vino Nobile di Montepulciano)