Elica S.p.A.: Hold Rating Amid Growth Challenges and Strategic Investments

In a report released yesterday, Carlo Maritano from Intermonte maintained a Hold rating on Elica S.p.A. (0EA2 – Research Report), with a price target of €1.60.

Carlo Maritano has given his Hold rating due to a combination of factors influencing Elica S.p.A.’s current financial and market position. The company has shown a return to top-line growth, with a slight increase in revenue, but its margins remain under pressure due to ongoing investments in transforming its Cooking business. This has resulted in an adjusted EBITDA that fell short of estimates, indicating challenges in achieving expected profitability.
Despite these challenges, Elica’s financial discipline is evident as its net debt remains stable, and the company maintains a solid financial position. The outlook for 2025 suggests a flat market, with expectations for turnover and margins to remain similar to 2024. The company’s strategic focus on mid-term opportunities and potential benefits from tariff changes provide some optimism, but the current uncertainties and market conditions justify a cautious Hold rating.

0EA2’s price has also changed moderately for the past six months – from EUR1.755 to EUR1.120, which is a -36.18% drop .