Pietro Nargi, an analyst from Intermonte, maintained the Buy rating on CY4Gate SpA (68H – Research Report). The associated price target remains the same with €6.10.
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Pietro Nargi has given his Buy rating due to a combination of factors that highlight CY4Gate SpA’s potential for growth and improved financial performance. The company’s revenue guidance for 2025 is set between €84-87 million, indicating a projected growth of approximately 14% year-over-year. This growth is supported by a stronger backlog and recurring contracts, which are expected to contribute significantly to the revenue, alongside the conversion of the commercial pipeline.
Additionally, CY4Gate’s business mix is evolving, with Cyber Security becoming a major growth segment, now accounting for 30% of sales. Despite challenges in pipeline conversion affecting the Forensic Intelligence segment, the company’s strategic focus on expanding market share in the Lawful Interception and Security segment in Italy is promising. Furthermore, the company’s financial position remains stable with adjusted net debt below the covenant threshold, providing a solid foundation for future expansion. These factors collectively support the Buy rating, with a target price of €6.10.
68H’s price has also changed moderately for the past six months – from EUR5.340 to EUR4.090, which is a -23.41% drop .