eVISO: Buy Rating on Data Center Expansion Strategy and Supportive Italian Regulatory Tailwinds

TP ICAP MIDCAP analyst Michele Mombelli maintained a Buy rating on eVISO SpA yesterday and set a price target of €14.00.

Michele Mombelli has given his Buy rating due to a combination of factors linked to eVISO’s new focus on data centers and a supportive regulatory backdrop in Italy. The recent Energy Decree-Law shortens authorization times for new data centers and requires Terna to publish grid connection capacity, which should speed up renewable connections and underpin a large wave of IT infrastructure investments.

Within this context, eVISO is rolling out an integrated offering for data centers that covers power sizing, grid-connection procedures, pre-construction services, and energy supply, with a first project already underway in North-East Italy. Mombelli estimates that each fully onboarded data center can add roughly €0.2m of gross margin in the first year, while the company remains unaffected by the new “Bollette” tax increase on energy producers, supporting the Buy rating and a €14 target price.

Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of 6Z8 in relation to earlier this year.