Growens S.p.A. Faces Challenges Amid AI Competition and Revised Growth Expectations, Leading to Hold Rating

Growens S.p.A. (GROW – Research Report), the Industrials sector company, was revisited by a Wall Street analyst on March 19. Analyst Gianluca Mozzali from Corporate Family Office SIM reiterated a Hold rating on the stock and has a €4.20 price target.

Gianluca Mozzali’s rating is based on several factors influencing Growens S.p.A.’s financial outlook. Despite achieving better-than-expected margins, the company faces increased competition due to the widespread adoption of generative AI in the marketing technology sector. This has led to a revision of the business plan for Beefree, a key growth driver, resulting in lower sales growth expectations and a delay in reaching EBITDA break-even by two years, now anticipated in 2027.
Additionally, the company’s revenues remained almost flat year-over-year, with a slight decrease in total revenues and a notable decline in Agile Telecom’s performance. Although Beefree’s sales showed significant growth, the overall financial results prompted a downward revision of estimates, leading to a reduced target price. The combination of these factors, along with the de-rating of peers’ multiples, supports the Hold rating, as the stock presents limited upside potential at this time.

GROW’s price has also changed moderately for the past six months – from EUR5.780 to EUR3.890, which is a -32.70% drop .