(Telestock) – Equity has reduced to 105 euros per share (from the previous 107 euros) the target price on the title Sesaa company listed on Euronext STAR Milan and active in technological innovation and IT and digital services for businesses, confirming the recommendation “Hold” on the title, after the release of the results of the first quarter of the financial year.
Analysts say 1Q25 is over slightly below expectations at operational levelmainly due to the sharp decline in Digital Green (-49% yoy in revenues and -59% yoy in EBITDA).
During the call it emerged that: Digital Green (mainly linked to the resale and installation of photovoltaic panels and batteries – sub-division of the VAS segment) starting from 1Q25 will be represented as a separate division; Digital Green should see a stable trend in the coming quarterswith an expected contribution of approximately 180 million euros in FY25; the sharp decline was determined by the challenging comparison with FY24, when tax incentives were present and almost absent in FY25.
The confirmation of the FY25 outlook is based on the expectation of growth in both SSI and VAS (ex-Digital Green) starting from 2Q25, with a more significant acceleration in 2H25. M&A completed to date is expected to contribute approximately 30% of the growth indicated in the FY25 outlook, with theBUT That remains a management priorityas well as expansion abroad.
Following the results, the broker made a fine-tuning of 2025-27 estimatesin particular by filing the NFP (2025 NFP to 56 million euros from the previous 78 million euros), to take into account the higher spending on M&A and a slightly more conservative view on FCF.
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