In a report released today, Simonetta Chiriotti from Mediobanca upgraded doValue S.p.A to a Buy, with a price target of €2.70.
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Simonetta Chiriotti has given her Buy rating due to a combination of factors that highlight doValue S.p.A’s potential for enhanced growth and diversification. The acquisition of coeo is a pivotal move, expected to significantly boost doValue’s growth trajectory and diversify its revenue streams. This acquisition is anticipated to elevate the company’s long-term growth rate and improve its financial metrics, such as EBITDA and free cash flow conversion rates, which are projected to be robust.
Furthermore, the acquisition addresses previous concerns about doValue’s medium-term growth and free cash flow generation, positioning the company for positive growth in the future. Despite some risks associated with customer concentration and market dependencies, strong customer retention and strategic partnerships, particularly with Klarna, mitigate these risks. Additionally, there are potential opportunities in expanding coeo’s operations into new markets, which are not yet factored into current estimates, providing further upside potential for doValue.
In another report released on July 15, Kepler Capital also maintained a Buy rating on the stock with a €2.40 price target.