(Finance) – CFO SIM has reduced target price (to 6.00 euros per share by the previous 8.00 euros) e recommendation (to Neutral da Buy) on the title Patterngroup listed on Euronext Growth Milan and active in the design, engineering and production of garments parade for important international fashion luxury brands.
Analysts write that i Pattern 2024 results were in line with expectations of the market and their predictions on sales and ebitda, but significantly better for NFP. The group recorded a turnover closer to the pro-form figure of 2023, thanks to 1) the consolidation of UVM, a sweater focused on thin and super thin knitwear, and 2) its resilient business model that is based on high-end luxury customers always eager to invest in product innovation.
CFO SIM has revised the model taking into account: 1) a growth in sales lower than previously expected; 2) a certain rationalization of the operating structure; 3) a reorganization of the Capex plan for the new Turin headquarters; 4) No dividend for the next few years (previous pay-out of 35%).
“On the basis of magazines estimates, we believe that Pattern is currently listed fairly on the fundamentals – reads the research – therefore, we modify our rating in neutral. However, we believe that Once the luxury market resumes growing, Pattern will undoubtedly be among the few operators able to benefit of a positive momentum, thanks to its solid financial structure, its unique competitive positioning and solid relationships with customers of luxury high -end “.
(Photo: Carrie Allen www.carrieallen.com on UNSPLASH)