IRCE SpA: Strategic Investments and Energy Transition Drive Buy Rating Amid Market Challenges

In a report released on March 21, Arianna Terazzi from Intesa Sanpaolo maintained a Buy rating on IRCE SpA (0EVS – Research Report), with a price target of €3.20.

Arianna Terazzi has given her Buy rating due to a combination of factors that highlight IRCE SpA’s potential for future growth despite current market challenges. The company has experienced a decline in volumes and revenues, particularly in the fourth quarter, but ongoing investments in the Czech Republic and China are expected to bolster its focus on specialized and higher-growth sectors. These strategic investments are anticipated to support the company’s medium-term growth prospects.
Furthermore, while the European market demand is currently soft, management anticipates a recovery in the latter half of 2025. The energy transition presents a significant growth opportunity for IRCE SpA’s business lines in the medium to long term. The company’s financial outlook for 2025-2026 incorporates these factors, with projections including contributions from new plants in China and the Czech Republic. The Buy rating is supported by a target price of EUR 3.2, based on a discounted cash flow model, reflecting confidence in the measures being implemented to enhance profitability and capitalize on medium-term potential.