(Finance) – Intesa Sanpaolo has coverage started on the title of MutuiOnline Group, a company listed on Euronext STAR Milan active in the online comparison, promotion and brokerage of financial institution products. The target price was set at € 44.2 per share (for a potential upside of about 50%), while the opinion on the stock is “Buy“Analysts point out that the company has grown rapidly organically and through acquisitions (a sales CAGR of 20% in 2017-21), with solid profitability (an EBITDA margin of around 30%), and therefore they believe that the company is “well positioned to ride the expected growth wave of digitization in the Italian market and a Business Process Outsourcing (BPO) consolidator. “
According to Intesa Sanpaolo, MutuiOnline Group can take advantage of several strengths specifics of the company to overcome market growth, while maintaining its solid profitability: 1) its leadership position in the Italian market in both divisions (Broking and Business Process Outsourcing); 2) a “well balanced” product portfolio, which makes the company “resilient to potential market downturns”; 3) a solid track record of acquisitions; and 4) a “solid cash generation and a solid balance sheet”, which should provide resources to finalize further acquisitions in the future, making MutuiOnline “a consolidator in the sector BPO “.
However, analysts also point out potential risks, including: 1) limited possibilities to improve profitability as the cost structure has already been optimized; 2) a weak trend in the mortgage market, which could recover only in the second half of 2022, after a year of normalization of mortgages; 3) the increase in costs that could reduce disposable income, with an impact on MutuiOnline; 4) concentration on the Italian market and lack of synergies between the Broking and BPO divisions.
Intesa Sanpaolo expects the company to close 2022 with revenues for 333.2 million euros, a EBITDA of 96.1 million euros and a Net income of 49.2 million euros. These values should increase in 2023, respectively, to 355.1 million euros, 103.5 million euros and 53.7 million euros.
(Photo: © Alexander Raths / 123RF)