Balanced Hold Rating on Technogym S.p.A. Amid Strong Performance and Fair Valuation

Analyst Daniele Alibrandi from Stifel Nicolaus maintained a Hold rating on Technogym S.p.A. (0RG1 – Research Report) and increased the price target to €12.00 from €11.50.

Daniele Alibrandi’s rating is based on Technogym S.p.A.’s recent financial performance and future outlook. The company reported better-than-expected results for FY-24, with significant organic growth and improved gross margins, leading to a notable increase in adjusted EBITDA. This robust performance was supported by strong free cash flow generation and efficient working capital management, allowing for substantial shareholder returns through dividends and potential buybacks.
Despite these positive developments, the stock is currently trading at a valuation that Alibrandi considers fair, with a price-to-earnings ratio in line with its historical average. While the company has a promising outlook with expected sales growth and margin expansion, the higher tax rate guidance slightly impacts earnings per share estimates. Consequently, Alibrandi maintains a Hold rating, reflecting a balanced view of the stock’s potential risks and rewards.