Analyst Davide Longo of TP ICAP MIDCAP maintained a Buy rating on DHH S.p.A (DHH – Research Report), with a price target of €30.20.
Davide Longo has given his Buy rating due to a combination of factors including DHH S.p.A’s strong financial performance and strategic positioning. The company reported a 7% year-over-year increase in revenue for FY24, reaching €37.1 million, which surpassed expectations. This growth was largely driven by recurring revenues, which accounted for approximately 94% of total revenues, and a notable 15% increase in EBITDA. The company’s ability to enhance its EBITDA and EBIT margins significantly indicates strong operational efficiency.
Moreover, DHH S.p.A has demonstrated resilience in a competitive market environment, benefiting from its “local-for-local” model and geographical diversification. The company’s net income surged by 68% year-over-year, and it successfully reduced its net financial position, highlighting improved financial health. The growth was organic, with significant contributions from its subsidiary Connesi and strong performances in Switzerland and the Balkan region. These factors, combined with the company’s strategic focus and market positioning, underpin Davide Longo’s Buy recommendation with a target price of €30.2.