Cautious Outlook on EuroGroup Laminations: Hold Rating Amid Financial and Market Challenges

In a report released yesterday, Matteo Bonizzoni from Kepler Capital maintained a Hold rating on EuroGroup Laminations S.p.A (EGLA – Research Report), with a price target of €2.70.

Matteo Bonizzoni has given his Hold rating due to a combination of factors impacting EuroGroup Laminations S.p.A. The company’s financial performance in the first quarter of 2025 showed a slight decline in revenue and a significant drop in EBIT, alongside a net loss partly attributed to foreign exchange losses. Despite the company’s reiterated guidance for sales growth and EBITDA margin, these projections are contingent upon stabilizing external conditions, which introduces uncertainty.
Additionally, EuroGroup Laminations is facing challenges in penetrating the Chinese market, where competition from established local producers is intense. The company’s customer base is diverse, but it lacks substantial exposure to Chinese OEMs, which could limit growth opportunities. Furthermore, the company aims to improve its return on capital employed and reduce capital expenditures, but achieving these targets will require overcoming current financial and market challenges. These factors collectively contribute to the Hold rating, reflecting a cautious outlook on the company’s near-term prospects.