Nocivelli APB, Banca Akros confirms Buy and raises target price

Nocivelli APB Banca Akros confirms Buy and raises target price

(Finance) –

Akros Bank raised the target price (to 7 euros per share from 5.7 euros, upside of 40.6%) and confirmed the recommendation (Buy) on Nocivelli ABPa company listed on Euronext Growth Milan and specialized in the creation of technological systems and Facility Management services. The company announced yesterday a clerk from 500 million of euros for the construction of the new “Health, Research and Innovation Park” hospital complex in Turin with the order book which rises to 1.4 billion euros compared to the 850 million euros previously declared.

According to the analysis, construction work alone will increase the turnover company’s annual turnover of 40 million euros in the next 5 years – 60% more than the current turnover which is around 75/80 million euros – while the long-term service contract could be valid for Nocivelli APB among the 10 to 12 million euros per year for the next 25 years. In this case the margin EBITDA should reach at least 20%.

“The news is very positive and not to be taken for granted – commented Banca Akros -. After the results, we increased our earnings per share estimates for fiscal year 25/27 averaging around 30%. Considering the hypotheses described above, we assume that the contract adds a asset value of approximately 42 million to our previous fair value, or approximately 1.3 euros/share”.

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