CY4Gate: Structural Business Upgrade and Growing Backlog Underpin Buy Rating and Raised €9.10 Target Price

Intermonte analyst Pietro Nargi maintained a Buy rating on CY4Gate SpA today and set a price target of €9.10.

Pietro Nargi has given his Buy rating due to a combination of factors that, in his view, signal a structural improvement in CY4Gate’s business profile and earnings visibility. He highlights that 2025 is a transition year marked by a sharp acceleration in order intake, a rising share of international contracts, and a broader shift toward longer-term agreements, which together underpin a growing backlog and smoother revenue and cash-flow patterns. The company’s ongoing internal overhaul – including reinforced governance, a strengthened management bench with deep defence expertise, and tighter cost and investment discipline – is seen as consolidating this progress and supporting the upgraded guidance for 2025 and beyond.
Pietro Nargi’s rating is based on the belief that CY4Gate is well positioned to capture further upside from deeper penetration of the corporate cybersecurity market and expanding opportunities in defence, helped by partnerships with larger industrial players and the ELT Group. He points out that the existing backlog of around €100mn, with a substantial recurring component feeding into 2026, already offers solid visibility on next year’s results, while additional contract options could add incremental growth. On valuation, he raises the target price to €9.10, derived from a combination of peer multiples and a DCF model that reflects the company’s restored capacity to generate cash. At this target, the stock trades at a modest premium to domestic peers, which he considers justified by CY4Gate’s order momentum, improving fundamentals, and potential for a further re-rating as execution continues to deliver.