F.I.L.A.’s Financial Efficiency and Strong Cash Flow Drive Buy Rating Amid Improved Profitability and Resilience

Intesa Sanpaolo analyst Giada Cabrino reiterated a Buy rating on F.I.L.A. Fabbrica Italiana Lapis ed Affini S.p.A. (0QIQ – Research Report) on March 25 and set a price target of €15.80.

Giada Cabrino has given her Buy rating due to a combination of factors that highlight F.I.L.A.’s improved financial efficiency and strong cash flow generation. Despite a slight decline in sales, the company significantly reduced its net debt by EUR 122.3 million, largely due to higher-than-expected free cash flow and proceeds from the sale of a stake in DOMS. This financial improvement was supported by better-than-expected profitability and effective net working capital management.
Moreover, F.I.L.A. demonstrated resilience in its FY24 performance with an improved EBITDA margin, driven by operational efficiencies and a strategic commercial approach. Looking forward, the company is well-positioned to handle potential economic challenges in FY25, with expectations of continued production efficiencies and a stable supply chain. The valuation of F.I.L.A. was also positively adjusted, reflecting lower net debt and improved margins, further supporting the Buy recommendation.

In another report released on March 24, Kepler Capital also maintained a Buy rating on the stock with a €18.50 price target.