(Telestock) – Analysts lower target price on Sesaa company listed on Euronext STAR Milan and active in technological innovation and IT and digital services for businesses, following the release of the Results of the fiscal year 2023/24 (ended in April) and a Virtual Investor Day was organized.
Equity has reduced the target price to 107 euros per share (from the previous 116 euros), confirming the recommendation “Hold“, following the lowering of 2025-26 estimates (-5% on average at adj. EPS level). The data highlighted a 4Q24 slightly lower than expected, especially in terms of EBITDA.
From the call, Equita highlights, it emerged that the FY25 guidance of the PFN includes the expenditure for new M&A and organic capex (100 million euros), while the FY25 guidance on the P&L does not include the impact of new M&A. Furthermore, the FY25 guidance on the adj. EPS is weaker than the expected growth at the operating level, mainly due to the factoring costs And interest on gross debtexpected to remain high at least in the first part of the year.
Intesa Sanpaolo has reduced the target price to 175.5 euros per share (from the previous 178 euros), confirming the recommendation “Buy“. Despite slightly lowering the expected EBITDA growth range for FY24/25, the updated guidance was broadly in line with estimates and consensus, with the exception of the bottom line, which came in below previous expectations (due to higher than expected financial costs, also impacted by higher factoring costs, although management said that a reversal of this trend is already starting to occur).
The broker has therefore revised downwards its FY24/25 estimates by around 2.5% in terms of EBITDA and by around 8.6% in terms of adj. group net
income. “However, we believe that this slight revision does not justify yesterday’s strong correction in the share price (-12.5%) also in light of the reassuring messages provided by management during the virtual Investor Day – it is underlined – Instead, we believe that, after the correction, the current valuation of SeSa represents even more of an investment opportunity“.
Intermonte has reduced the target price to 152 euros per share (from the previous 175 euros), confirming the recommendation “Buy“. This broker also lowered its estimates: overall, compared to previous forecasts, it cut its EPS assumptions by 10.9%.
“In our opinion, the stock market overreacted to the weakening of profitability guidance – the research states – We expect the group to recover solid earnings momentum from the second half of the year, also supported by the normalization of financial charges. In recent years, the business has evolved from the traditional VAD segment towards higher value-added activities (SSI and business services) that should support profitability growth in the years to come. The group enjoys a strong market positioning thanks to a clear focus on technology, with well-diversified revenues across a broad customer base”.