(Finance) – EnVent Italia SIM has lowered to 1.90 euros per share (from 3.34 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 122%. The revision of the recommendation comes after the company reported its preliminary 2023 results.
Analysts write that Take Off recorded a fourth quarter of 2023 lower than expectationswith sales of 7.8 million euros, down 24% compared to the fourth quarter of 2022, a frequent condition in the clothing retail sector.
Based on management guidance, KPIs and the general economic context, EnVent has adjusted its sales estimates for 2023 and taken into account the expected decline in profitability. According to management, the focus for 2024 will be to preserve a healthy financial profile and profitability, based on cost containment measures to resume growth of the retail network.
Due to the expected impact of reorganization costs and reduced operating profit, EnVent has reworked the valuation to a short-term perspective accompanied by more prudent hypotheses in the medium/long term.