Intesa Sanpaolo analyst Arianna Terazzi maintained a Buy rating on IRCE SpA yesterday and set a price target of €2.90.
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Arianna Terazzi has given his Buy rating due to a combination of factors linked to IRCE SpA’s operational streamlining and international growth pipeline. Despite a temporary setback in FY25 results, with lower volumes impacting revenues and margins, management is executing a clear rationalisation program and investing in new plants, which is expected to enhance efficiency and profitability over the next few years.
Terazzi highlights that the ramp-up of the Czech facility and the launch of production in China should gradually lift volumes and margins, offsetting the currently soft demand environment. Moreover, the progressive completion of foreign investments, together with a potential capital gain from the disposal of Smit Draad’s assets, supports a constructive outlook on cash generation and balance-sheet sustainability, underpinning the Buy recommendation.