Intesa Sanpaolo analyst Monica Bosio maintained a Buy rating on EuroGroup Laminations S.p.A (EGLA – Research Report) on February 25 and set a price target of €3.80.
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Monica Bosio has given her Buy rating due to a combination of factors that reflect both current challenges and future potential for EuroGroup Laminations S.p.A. Despite anticipated shortfalls in the company’s FY24 top line and EBITDA guidance, largely due to the impact of strikes at VW and weaker performance by Tesla, Bosio sees potential for controlled growth. The company’s diversified customer base and geographic positioning are expected to support better free cash flow generation moving forward.
Furthermore, while the automotive market faces uncertainties, including regulatory changes and a slower electrification path in Europe, EuroGroup Laminations is positioned to leverage its existing capacities. The current stock price already accounts for these challenges, and Bosio believes that the company’s strategic positioning will allow it to navigate these difficulties effectively, justifying the Buy rating with a reduced target price of EUR 3.8.
In another report released on February 25, Kepler Capital also maintained a Buy rating on the stock with a €4.40 price target.