(Finance) – Intermonte confirmed to 11.5 euros per share the target price on The Italian Sea Group (TISG), a global luxury yachting operator listed on Euronext Milan, also maintaining the judgment on the title to “BuyThe recommendation update came after the company reported first-half 2023 results, which analysts described as “slightly above” forecasts in terms of revenue and profitability, confirming positive underlying trends and business development .
The broker has left the estimates substantially unchanged, except for the recognition of higher D&A resulting from a CapEx level that now takes into account the Celi acquisition, the new office building and the finalization of investment projects. This results in a slightly lower bottom line, but does not impact the valuation.
“Thanks to its positioning among the main players in the top end of the yacht sector, its unique and comprehensive business and facilities, as well as high visibility on the prospects and cash generation confirmed in the corporate objectives, TISG seems very well positioned to exploit the full potential of a constantly growing sector – we read in the research – The clear opportunity to further expand its capacity and exploit the opportunity of sailing boats through the Perini Navi brand, as well as the new semi-custom projects add further upside”.
It is noted that the title trades at an EV/EBITDA of 7.2x/5.7x for 2023/24, still at a discount to Saint Lawrence on 2024 (-10%), which “definitely does not fully recognize the value of TISG in light of the growing visibility on results and prospects”.