Gefran SPA, the Industrial Goods sector company, was revisited by a Wall Street analyst on November 14. Analyst Marco Vitale from Mediobanca reiterated a Buy rating on the stock and has a €13.00 price target.
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Marco Vitale has given his Buy rating due to a combination of factors that highlight Gefran SPA’s potential for growth and profitability. The company’s third-quarter results aligned with expectations, showing a steady increase in revenue, particularly driven by the Sensors division, despite facing challenges like cost inflation and non-recurring expenses. The management’s outlook for the fourth quarter suggests a continuation of these positive trends, with an anticipated normalization of profitability as temporary headwinds subside.
Furthermore, Gefran’s strong cash generation and strategic focus on M&A opportunities, particularly in the domestic and DACH regions, support the company’s growth prospects. The increase in the target price to €13.0 per share reflects these positive developments and the potential for a 15% EPS CAGR from 2026 to 2027. Despite some short-term margin pressures, the company’s long-term growth trajectory and strategic initiatives make it an attractive investment, justifying the Outperform rating.
Based on the recent corporate insider activity of 6 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 0EKI in relation to earlier this year.