(Tiper Stock Exchange) – Bank Profile confirmed the “Buy” recommendation and the target price at 17 euros per share on the title Svas Biosana, a company listed on Euronext Growth Milan and active in the production of medical devices for healthcare facilities. Analysts note that the company trades at a discount to comparable stocks due to the less marginality and of reduced exposure to advanced medical device manufacturing.
Up-to-date forecasts on revenues for FY23-24 indicate a growth of 14% and 5%, respectively to 110.6 million euro and 115.6 million euro (from 103.7 million euro and 109.9 million euro), due higher volumes and expected prices. On an organic basis, FY23 is seen growing by 7%.
Banca Profilo has reduced its forecasts on EBITDA marginwhich now stands at 12.7% in FY23 (-1.4 percentage points vs. previous) in FY23, 13.8% in FY24 (-0.9 percentage points vs. previous) and 15% in FY25 , as Svas recorded a spike in material costs during the second half of 2022.
Analysts see minor improvements in raw material cost weighting during the first half of 2023, while over second semester 2023 expect at ainversion towards fiscal 2021 levels, supporting margin expansion.