(Finance) – The analysts promote The Italian Sea Group (TISG), global luxury yacht operator listed on Euronext Milan, which yesterday released its 2022 results and held its first Capital Markets Dayduring which it communicated new objectives for the period 2023-2024, after the completion of the Perini Navi acquisition and the integration of the assets deriving from it substantially changed the perimeter of the Marina di Carrara group.
Intermonte confirmed the “Buy” judgment and increased the target price to 11 euros per share (from 8.50 euros per share), while TP ICAP Midcap reaffirmed the “Buy” recommendation with a target price at 9 euros for action.
“We believe the company and management have so far proven theirs reliability and ability to deliver results“, writes Intermonte, highlighting that since 2018 TISG has grown at a CAGR of 45% for revenues and 66% for EBITDA with a profitability expansion of 680 basis points in the period. “The objectives provided are in our opinion reasonable and feasible on the back of continued buoyant market demand for super and gigayachts and the backlog which already covers a large part of the coming years’ sales and profitability,” reads the post-results research.
According to the broker, the stock is still trading at a depressed multiple of 5.8x/4.2x EV/EBITDA ’23/’24, a significant discount compared to Saint Lawrence (-30%/-45%) “which in our opinion certainly does not fully recognize the value of TISG in light of the growing visibility on results and prospects”.
TP ICAP Midcap analysts write instead that their “positive view of the group’s efforts to strengthen the premium positioning compared to Northern European competitors is based on a unique and diverse range of leading brands“. “Despite a share price appreciation of more than 50% since October 2022, we believe the stock still has a significant upside“, reads the research released today. Appreciated the record order book of 1 billion euros which provides visibility until 2026.