EuroGroup Laminations S.p.A.: Navigating Growth Opportunities Amid Market Uncertainties with a Hold Rating

In a report released on May 21, Monica Bosio from Intesa Sanpaolo maintained a Hold rating on EuroGroup Laminations S.p.A (EGLA – Research Report), with a price target of €3.20.

Monica Bosio’s rating is based on a combination of factors that reflect both the strengths and challenges facing EuroGroup Laminations S.p.A. The company has shown confidence in meeting its full-year guidance despite a somewhat subdued momentum in its order pipeline. However, the current environment and a year that is heavily back-end loaded leave little room for upward adjustments in earnings projections, which are already below the consensus.

In the E-mobility sector, while there was a notable increase in volumes, particularly from China, pricing was affected by a shift towards a different product mix. Additionally, the order book remained relatively stable, but the order pipeline saw a significant decline due to the postponement of major projects. The Industrial & Home Solutions segment faced challenges, including reduced demand in the USA and a weak European market, though some recovery is expected in the latter half of the year. These mixed signals contribute to the Hold rating, as the company navigates both growth opportunities and market uncertainties.

In another report released on May 20, Kepler Capital also maintained a Hold rating on the stock with a €2.70 price target.