In a report released on March 17, Andrea Randone from Intermonte maintained a Buy rating on El.En. S.p.A. (0RH2 – Research Report), with a price target of €14.00.
Andrea Randone has given his Buy rating due to a combination of factors that highlight El.En. S.p.A.’s strong financial position and potential for growth. The company’s Medical division has shown impressive performance, particularly in the Aesthetic and Medical Services segments, which have exceeded expectations with significant year-over-year growth. Despite challenges in the industrial segment, the company’s overall cash generation has been robust, surpassing forecasts and indicating efficient management of net working capital.
Looking ahead, the company remains optimistic about 2025, anticipating revenue growth, especially in the industrial sector, and maintaining healthy cash generation. Although geopolitical uncertainties pose challenges, the potential divestment of the Chinese industrial cutting business could further strengthen El.En.’s financial position by increasing its focus on the high-margin Medical business. The stock’s current valuation appears attractive, and if the divestment proceeds as planned, it could enhance the company’s market standing, justifying the Buy rating.
0RH2’s price has also changed slightly for the past six months – from EUR10.020 to EUR9.035, which is a -9.83% drop .