Intesa Sanpaolo analyst Davide Rimini maintained a Buy rating on Grifal SpA (GRAL – Research Report) yesterday and set a price target of €2.50.
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Davide Rimini has given his Buy rating due to a combination of factors that highlight Grifal SpA’s potential for growth. The company has successfully navigated a challenging market environment, with its FY24 sales remaining stable despite a slightly positive domestic paper packaging market. This stability was bolstered by strong international sales and the impressive performance of their innovative product, cArtù, which contributed significantly to the company’s revenue.
Additionally, Grifal’s profitability has seen improvement, with the EBITDA margin reaching record levels due to favorable raw material pricing. The company’s strategic infrastructural investments have set the stage for future growth, and despite a cautious outlook from peers, Grifal’s ability to maintain high profit margins is promising. The unchanged target price of EUR 2.5 reflects the belief that the current share price does not fully capture Grifal’s earnings growth potential, making it an attractive investment opportunity.