In a report released yesterday, Filippo Migliorisi from TP ICAP MIDCAP reiterated a Buy rating on Italian Exhibition Group SpA, with a price target of €9.00.
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Filippo Migliorisi has given his Buy rating due to a combination of factors that highlight the Italian Exhibition Group SpA’s potential for growth and value. The company is expected to show improved performance, primarily driven by organic growth from key events, despite the financial strain from recent acquisitions. The upcoming H1 results are anticipated to be solid, supported by strong momentum from the first quarter, which was a record period even in a typically less favorable year for exhibitions.
Moreover, the company’s strategic moves, such as acquiring high-potential trade fairs and forming a partnership with Fiera Milano, are expected to strengthen its market position. Although there is an expected increase in net debt due to acquisitions and limited cash generation amidst significant capital expenditure, the stock is still seen as undervalued compared to its peers. This undervaluation is evident in the significant discount on EV/EBITDA, EV/EBIT, and P/E ratios, suggesting that the market may be overly cautious about the company’s cash generation capabilities amidst its international expansion and investments.
According to TipRanks, Migliorisi is a 3-star analyst with an average return of 7.0% and a 41.18% success rate. Migliorisi covers the Communication Services sector, focusing on stocks such as Intred SpA, Italian Exhibition Group SpA, and Casta Diva Group S.p.A..