Balanced Hold Rating for doValue S.p.A. Amid Strong Performance and Cautious Outlook

Mediobanca analyst Simonetta Chiriotti maintained a Hold rating on doValue S.p.A (1DB0 – Research Report) on March 27 and set a price target of €1.90.

Simonetta Chiriotti’s rating is based on a combination of factors that reflect both positive performance and cautious outlook for doValue S.p.A. The company’s 2024 results slightly exceeded expectations, with revenues and EBITDA surpassing initial estimates, supported by strong ancillary and other revenues. Additionally, the acquisition of Gardant and progress in diversification strategies have positively impacted the company’s gross book value (GBV), which reached €135.6 billion, slightly above projections.
Despite these positive developments, there are factors contributing to a more cautious stance. While doValue has shown strong commercial momentum in early 2025, achieving a significant portion of its annual target for new business, there are concerns regarding the evolution of net working capital and potential redundancy and restructuring costs. These factors suggest a slower improvement in free cash flow than the company’s targets, leading to a leverage ratio that remains above the desired level. Consequently, the Hold rating reflects a balanced view of the company’s current achievements and the challenges it faces in meeting its financial objectives.