Analyst from TP ICAP MIDCAP maintained a Buy rating on Somec S.p.A. and increased the price target to €20.00 from €18.10.
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TP ICAP (Europe) S.A. has given its Buy rating due to a combination of factors, primarily driven by the positive outlook in the cruise industry and Somec’s strategic positioning. The company is capitalizing on the cruise industry’s robust growth, with a significant increase in demand for premium and luxury segments, which aligns well with Somec’s expertise in marine glazing and professional kitchens.
Additionally, the Mestieri division has shown a strong recovery in profitability after a challenging period, with expectations for continued margin improvements. Somec’s stock is currently undervalued, trading at historically low multiples, which presents a substantial rerating opportunity. The company’s operational recovery and reduced leverage further support the potential for significant upside, making it an attractive investment with a favorable risk/reward profile.