(Finance) – Intermonte he lowered to 7.0 euros per share (from 9.8 euros) the target price on Industrial seriesa company listed on Euronext Milan and operating in the plastic materials and electrical accumulators sector, and confirmed the judgment to “Buy“. Analysts revised the recommendation after i first half 2023 results “as-is” have been penalized by the drop in reference prices and the increase in electricity costs, and considering a series of delays in key projects.
After startup at the end of 2022, the lithium battery plant of Teverola 1 experienced a significant increase in production waste and downtime once production increased. Analysts are therefore moving the forecast by one yearassuming revenues of 7/55/133 million euros in 2023/24/25 (vs previous 61/140/148 million euros) and reflecting in 2023 the spot sale of the products obtained during the ramp-up, and from 2024 in then the progressive increase in production.
In the gigafactory project Teverola 2, the new CTO and his team are redefining all the process parameters of the plant. Here the broker now expects the trading acceleration of the T2 to 2027 (compared to the previous half of 2026).
“There have been obvious missteps in project execution relating to lithium batteries which represent the main value driver of Seri’s equity story – we read in the research – The consequences of this are the further postponement of the commercial launch of the T1 plant and the slower than expected implementation of CapEx at T2, resulting in a negative share price performance. However, the arrival of the new CTO and the collection of advances on T2 strengthen ours confidence in the implementation of the industrial plan, even if with delays compared to the original plan”.