(Finance) – EnVent Italia SIM has lowered to 3.34 euros per share (from 6.41 euros) the target price on Take Offa group listed on Euronext Growth Milan and active in the retail trade of clothing and accessories for adults and children, confirming the judgment “Outperform” given the potential upside of 96%. The revision of the recommendation comes after the company reported its first half 2023 results.
Based on the results of the first half, and considering the historical seasonality with concentration of sales in the second half, EnVent has confirmed sales estimates, deemed “achievable”. On the other hand, they take into account the decrease in profitabilitywhich translates into an EBITDA margin on sales in the order of 20%, in line with the 18-20% range indicated by management.
Analysts observe that in the first half of the year there were 3 Take Off store openings and 1 closure, bringing the stores to 164, with this breakdown: Take Off 50, Overkids 114. “We recognize a slowdown in openingsattributable, according to management, to the repositioning in more performing locations”, we read in the research.
EnVent also points out that the price of Take Off shares remained stable until February-March 2023, trading in the range of 4.70-3.70 euros, then a downward trend began, leading to its all-time low in the region of 1 EUR. The share price has lost 75% in the last twelve months, underperforming the Italy Growth Index at -7%.