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Interpump Group SPA’s Long-Term Value Remains Intact Despite Short-Term Setbacks

Interpump Group SPA’s Long-Term Value Remains Intact Despite Short-Term Setbacks

In a report released today, Mario Coppola from Stifel Nicolaus maintained a Buy rating on Interpump Group SPA (0EWDResearch Report), with a price target of €45.70.

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Mario Coppola has given his Buy rating due to a combination of factors that reflect both the challenges and potential of Interpump Group SPA. Despite the company’s disappointing fourth quarter in 2024, largely due to an inventory write-down that impacted profitability, the fundamentals of strong cash flow and effective management strategies have been emphasized. The company’s free cash flow remained robust, with a significant reduction in net debt, showcasing financial resilience.
While the company’s share price has dropped due to missed expectations and a challenging outlook, this decline is considered to have already accounted for the negative news. Management’s commitment to countermeasures aimed at protecting margins and maintaining strong cash generation adds to the positive outlook. Moreover, the price adjustments and realistic EPS estimates have been incorporated, leading to a revised price target that still supports a Buy recommendation. Therefore, despite short-term setbacks, the long-term value proposition remains intact, according to Coppola’s analysis.

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