(Telestock) – Intermonte has increased to 31.0 euros per share (from the previous 28.9 euros) the target price on Mon-Fria company listed on Euronext Milan and active in the air heat exchangers sector, confirming the recommendation on the title to “Outperform“.
Analysts have expressed More cautious forecasts on heat pump business in the 2024 estimates (FY24 revenues expected at €25 million from €45 million). In 2025, visibility remains low but the business is still expected to reach €35 million in revenues (+€10 million). In 2025, the nuclear sector is also estimated to contribute €15 million to revenues. Finally, the traditional core business is expected to grow by 3.7% YoY in 2024 to €565 million and by 4% YoY in 2025.
Conversely, in terms of marginalitythe broker is improving estimates for 2024 and 2025 by 40bp and 20bp respectively. Overall, having also reduced financial charges, it is making small changes (+2.8%/+2.0%/+3.2%) to the 2024/25/26 EPS. In terms of cash flow, a CapEx for 2024 and 2025 of €35 million (from €40 million) is forecast. Thanks to an effective management of the NWC, they are also improving net cash flow generation estimates.
The new target price was set to reflect the improved net cash generation estimates.”We appreciate the excellent positioning of the group and its significant diversification in promising areas – the research states – The group was able to respond promptly to the worsening outlook for the heat pump business, realizing cost savings that safeguard profitability this year and will improve operating leverage in the coming years”.