Intesa Sanpaolo analyst Davide Rimini downgraded the rating on Equita Group SpA (EQUI – Research Report) to a Hold on April 2, setting a price target of €4.70.
Davide Rimini has given his Hold rating due to a combination of factors impacting Equita Group SpA. The company’s fourth-quarter results for 2024 were weaker than anticipated, with significant declines in revenue across all business units, leading to a 9% drop in total revenue for the year. This was attributed to the challenging conditions in the equity capital markets. Despite these challenges, the company maintained a high dividend yield, proposing an unchanged dividend per share, which reflects a yield of approximately 8%.
Looking ahead, the management’s positive outlook for 2025, supported by a strong start to the year and expected recovery in the equity capital markets by year-end, provides some optimism. However, the reduction in revenue estimates for 2025 and 2026, along with the revised target price of EUR 4.7, suggests that the stock is currently fairly valued. Therefore, the Hold rating reflects the balance between the anticipated recovery and the current valuation of the stock.