Casta Diva Group: Accretive Prodea Events Acquisition Strengthens Strategic Positioning and Supports Upward Target Price Revision

TP ICAP MIDCAP analyst Alessio Olmi maintained a Buy rating on Casta Diva Group S.p.A. on January 6 and set a price target of €2.70.

Alessio Olmi has given his Buy rating due to a combination of factors related to Casta Diva Group’s recent strategic move and its financial implications. The acquisition of Prodea Group’s Events division meaningfully strengthens Casta Diva’s positioning in the live communication and events market, particularly through the boost to its subsidiary G2 Eventi, while adding a skilled team and established commercial relationships with limited client overlap. The deal was struck at very attractive valuation levels, with a low EV/EBITDA multiple even under conservative assumptions of a temporary earnings setback, underscoring its accretive nature and management’s ability to execute opportunistic transactions on favorable terms.
In addition, the transaction supports a more effective use of the €10m bond issued in 2025 and is expected to drive solid earnings growth once integration effects subside. Olmi’s forecasts incorporate a cautious initial haircut to the acquired business’s contribution but anticipate a full normalization by 2027 thanks to Casta Diva’s proven profitability and the fact that the unit was operationally sound despite Prodea’s broader insolvency. This leads to a robust projected increase in EPS in 2026 and 2027, which, combined with the strengthened strategic profile, justifies an upward revision of the target price to €2.7 and underpins the reiterated Buy recommendation.