tiprankstipranks
Ratings

Elica S.p.A: Resilience Amidst Challenges with Optimistic Outlook for 2025

Elica S.p.A: Resilience Amidst Challenges with Optimistic Outlook for 2025

Analyst Andrea Randone of Intermonte maintained a Hold rating on Elica S.p.A. (0EA2Research Report), with a price target of €1.80.

Discover the Best Stocks and Maximize Your Portfolio:

Andrea Randone has given his Hold rating due to a combination of factors that highlight both challenges and potential for Elica S.p.A. In the fourth quarter, the company demonstrated resilience with revenues slightly exceeding expectations, driven by better-than-anticipated performance from its Own Brands segment. However, profitability took a hit with adjusted EBIT falling short of estimates, largely due to a less favorable price mix and increased investment in new product launches.
Looking ahead to 2025, Elica faces a flat market environment but remains optimistic about a potential recovery in the latter half of the year. Despite the competitive pressures on pricing, the company aims to enhance its financial position by optimizing working capital and exploring opportunities for sustainable M&A. While the market conditions are challenging, Elica has reaffirmed its medium-term growth targets and plans to expand its market share across key segments. These strategic initiatives, along with a solid financial foundation, underpin the Hold rating, as downside risks appear limited and management’s actions are expected to yield positive results once demand rebounds.

0EA2’s price has also changed moderately for the past six months – from EUR2.330 to EUR1.755, which is a -24.68% drop .

1