(Finance) – Intesa Sanpaolo reduced to 2.6 euros per share (from 3 euros) the target price up Mondadoripublishing group listed on Euronext STAR Milan, maintaining the opinion on the stock at “Buy“. The revision of the recommendation came after the company released data for the first quarter of 2022 and confirmed the estimates previously disclosed.” In a weak seasonal quarter, Mondadori produced slightly better results than our estimates – analysts write – More importantly, it confirmed the guidance for fiscal 2022 as it expects to offset the greater impact of rising paper costs with greater cost savings“.
“We reiterate our opinion that Mondadori has a wrong price, in that trades like it’s a media company rather than a book publisheralthough 86% of its EBITDA is expected to come from books in 2022 – the research points out – This, combined with its prospects for mergers and acquisitions and the restoration of dividend policy, makes us confident on our Buy recommendation. “
Intesa Sanpaolo expects the company to close 2022 with revenues for € 866.7 million, a Adjusted EBITDA of 128 million euros and a Net income of 49.1 million euros. These values should increase in 2023, respectively, to 922.9 million euros, 140.9 million euros and 55.9 million euros. A further increase in revenues of 931.8 million euros, an adjusted EBITDA of 144 million euros and a net profit of 59 million euros is then expected in 2024.