In a report released yesterday, Giorgio Tavolini from Intermonte maintained a Buy rating on Intred SpA (ITD – Research Report), with a price target of €16.50.
Giorgio Tavolini has given his Buy rating due to a combination of factors that highlight Intred SpA’s strong financial performance and strategic positioning. The company’s EBITDA margin exceeded expectations, reaching 43% for the full year, despite significant marketing expenses and the integration of Connecting Italia, which initially had a lower margin. This demonstrates Intred’s ability to maintain profitability while investing in brand awareness and strategic acquisitions.
Furthermore, Tavolini notes the positive short-term outlook for FY25, supported by increasing volumes and continued investment in network expansion. The company’s strategic focus on differentiation opportunities in adjacent sectors, such as the data center project, offers high revenue visibility and strong profitability potential. Additionally, Intred’s proprietary network and loyal customer base position it well for potential market consolidation, further enhancing its growth prospects. The stock’s current valuation, trading at approximately 7x EV/EBITDA for 2025, also presents an attractive investment opportunity compared to peers.