Intred SpA: Strengthening Quality Revenue Mix and Data Center Optionality Underpins Reiterated Buy and €18.3 Target Price

In a report released yesterday, Michele Mombelli from TP ICAP MIDCAP maintained a Buy rating on Intred SpA, with a price target of €18.30.

Michele Mombelli has given his Buy rating due to a combination of factors that highlight the resilience and quality of Intred SpA’s core business. The company’s recurring-fee activities, which represent the vast majority of revenues, continued to grow at a healthy pace, supported by solid momentum in ultra-broadband services and a strong acceleration in the data center segment. Despite a modest overall increase in total sales, the mix has improved thanks to the intentional reduction of low-margin and non-strategic activities, as well as the gradual replacement of one-off school-tender contracts with longer-term public administration customers.

Michele Mombelli’s rating is based on the view that this shift toward higher-quality, more sustainable revenue streams lays a strong foundation for future growth. He also sees meaningful optionality in the still-small but rapidly expanding data center business, which is expected to play a larger role over the medium term, particularly from 2027–2028 onwards. In addition, the company’s decision to initiate an uplisting to Euronext Milan and adopt IAS/IFRS is interpreted as a step toward greater visibility and governance standards, potentially broadening the investor base. Taken together, these elements support the reiteration of a Buy recommendation and a target price of €18.3, reflecting confidence in both current operational performance and longer-term strategic potential.

Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ITD in relation to earlier this year.