(Finance) – Intesa Sanpaolo has reduced to 1.00 euros per share (from the previous 2.2 euros) the target price on OSAI Automation Systema company listed on Euronext Growth Milan and active in the production of machines for the automation and testing of semiconductors, confirming the recommendation “Buy” on the stock given the potential upside of 35%.
Analysts write that first-half 2024 results showed a slowdown in production, while the unfavorable mix following the fiscal 2023 backlog put pressure on profitability. Order taking at the end of June fell sharply and, despite the trend reversal observed in recent months, short-term market visibility is low.
The broker has revised the projections to reflect a Lower VoP (-18% on average over the period 2024-26) and expects the company return to break-even in 2026awaiting the first results of the company’s measures to recover profitability and an update on order intake.
“We believe that after navigating through the current environment, with poor visibility improving slightly in Q3 based on management comments, the company should grow in the medium term, with a further potential in the circular economy that is likely to materialize from 2025“, we read in the research.