Jefferies analyst Constantin Hesse maintained a Hold rating on Industrie De Nora SpA today and set a price target of €6.20.
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Constantin Hesse has given his Hold rating due to a combination of factors affecting Industrie De Nora SpA. The company’s second-quarter performance was a mixed bag, with sales aligning with market expectations and adjusted EBITDA surpassing them by 8%, largely due to improved profitability in Water Technologies, particularly in pool-related segments. However, the decline in orders by approximately 9% quarter-over-quarter and the flat year-over-year performance raised concerns.
Despite the positive earnings beat, the reduction in order intake is expected to impact the stock’s performance negatively. The company’s net cash position also decreased significantly from €67 million at the end of the previous fiscal year to €12 million. Although the sales guidance for the fiscal year 2025 was confirmed, the modest upgrade in the adjusted EBITDA margin suggests only mid single-digit improvements. The outlook for order intake in the coming months will be crucial in shaping future expectations, especially given the already low market expectations following a recent guidance cut.
Hesse covers the Industrials sector, focusing on stocks such as Nordex, Fuchs Petrolub, and PVA TePla. According to TipRanks, Hesse has an average return of -1.1% and a 45.15% success rate on recommended stocks.