Eurotech S.p.A., the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Andrea Zampaloni from Alantra Equities maintained a Hold rating on the stock and has a €0.90 price target.
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Andrea Zampaloni’s rating is based on Eurotech S.p.A.’s recent performance and future prospects. The company’s third-quarter revenues remained flat year-over-year, primarily due to challenges in the US legacy business, although there was a sequential improvement from earlier in the year. Encouragingly, the order intake has increased by 25% year-over-year, indicating a positive outlook for the mid-term. Operating efficiencies have improved, bringing adjusted EBITDA into positive territory, which reflects effective cost management.
Despite these positive developments, net debt remains a concern, although it has slightly improved from the previous year-end. The company’s strategic plan, focusing on engineering excellence and cybersecurity, is expected to drive future growth, but the full impact is yet to be seen. Given these mixed signals, Andrea Zampaloni has maintained a Hold rating with a target price of €0.9 per share, suggesting that while there is potential for growth, it is prudent to wait for more concrete results from the strategic initiatives before considering a more aggressive stance on the stock.