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DHH: Compelling Buy on Scalable Growth, Strong Cash Generation and Discounted Valuation in AI-Driven Cloud Infrastructure

DHH: Compelling Buy on Scalable Growth, Strong Cash Generation and Discounted Valuation in AI-Driven Cloud Infrastructure

Analyst Giorgio Tavolini of Intermonte maintained a Buy rating on DHH S.p.A, retaining the price target of €32.00.

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Giorgio Tavolini has given his Buy rating due to a combination of factors, primarily the company’s consistent double‑digit growth and highly recurring revenue base, which confirm the scalability and resilience of DHH’s business model. Profitability is improving, cash generation is strong, and the balance sheet is solid, supported by positive net cash and healthy post‑CapEx free cash flow.

He also sees attractive upside in the valuation, with the stock trading at a meaningful discount to both larger peers and recent sector transactions on an EV/EBITDA basis. In addition, DHH is benefiting from rising demand for AI‑driven cloud infrastructure, has a clear M&A pipeline focused on synergistic MSP acquisitions, and enjoys a diversified geographic footprint that reduces concentration and insolvency risks.

DHH’s price has also changed slightly for the past six months – from EUR23.900 to EUR21.600, which is a -9.62% drop .

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