EuroGroup Laminations S.p.A. Downgraded to Neutral Amid E-Mobility Challenges and Pricing Pressures

Intesa Sanpaolo analyst Monica Bosio downgraded the rating on EuroGroup Laminations S.p.A (EGLA – Research Report) to a Hold yesterday, setting a price target of €2.60.

Monica Bosio has given her Hold rating due to a combination of factors influencing EuroGroup Laminations S.p.A. The company’s recent financial results aligned with market expectations, yet the updated guidance reflects challenges in the electric mobility sector and industrial applications recovery. These factors, coupled with the current tariff environment, suggest a cautious outlook.
Despite targeting a 10% revenue increase and a 12% adjusted EBITDA margin for FY25, these projections fall short of previous estimates and indicate pricing pressures in the E-mobility segment. The company’s strategic focus on diversifying product applications and maintaining disciplined capital expenditure and working capital policies is noted. However, the lack of short-term catalysts and revised estimates, which are below consensus, alongside stretched peer valuations, have led to a downgrade from Buy to Neutral, with a target price set at EUR 2.6.

EGLA’s price has also changed moderately for the past six months – from EUR3.244 to EUR2.474, which is a -23.74% drop .