(Finance) – Value Track has the target price confirmed at € 16 per share on the title of Nice Footwear, a group listed since November 2021 on Euronext Growth Milan and active in the development, production and distribution of leisure and sport shoes. The shares of the Vicenza group closed today’s session unchanged at 12 euros per share. The evaluation update came after the release of the preliminary 2021 results and the acquisition of Emmegi, a Paduan company active in the production of women’s bags for the fashion sector in the premium segment.
Analysts have reviewed the top line upward considering the data for the first half of fiscal year 2022 (better than expected) and the contribution of Emmegi; the latter contributes approximately 500,000 euros, 2 million euros and 2.2 million euros, respectively, in the financial years 2022, 2023 and 2024. I operating margins they are under pressure from rising raw material costs and are only partially passed on to the final consumer in the short term. “However, starting in fiscal 2023, Emmegi’s stronger contribution and more efficient cost management should increase margins and offset higher operating costs,” highlights Value Track. The cash flow it is weakened by the lower profitability of 2022, the longer cycle of working capital and the cost of the acquisition of Emmegi.
Value Track expects now that the company closes the fiscal year 2022 (in April 2022) with revenue from sales of 29.7 million euros, a Adjusted EBITDA of 2.8 million euros and a Adjusted net profit of 1 million euros. These values should rise in 2023, respectively, to 33.9 million euros, 4.1 million euros and 1.9 million euros. The forecasts are also for a further increase in 2024 in revenues from sales of 40.8 million euros, an adjusted EBITDA of 5.1 million euros and a net profit of 2.5 million euros.