Italian Sea Group S.p.A. (6QN – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst on March 17. Analyst Filippo Migliorisi from TP ICAP MIDCAP maintained a Buy rating on the stock and has a €12.70 price target.
Filippo Migliorisi has given his Buy rating due to a combination of factors that highlight the Italian Sea Group S.p.A.’s strong financial performance and strategic positioning. The company reported an 11% year-over-year increase in revenue for 2024, reaching €404.4 million, which aligns closely with expectations. This growth is largely driven by a 15% increase in shipbuilding activities, particularly in the lucrative segment of yachts over 50 meters, which constitutes a significant portion of their revenue.
Furthermore, the company’s EBITDA margin improved to 17.4%, thanks to effective cost management and strategic production choices. Despite a decrease in net backlog due to revenue variations, the management remains optimistic about securing new orders early in the 2025 fiscal year. Additionally, the company’s guidance for mid-single-digit revenue growth and a modest increase in EBITDA margin further supports the positive outlook. These factors collectively underpin the Buy recommendation, with a target price set at €12.7.
In another report released on March 17, Kepler Capital also maintained a Buy rating on the stock with a €11.00 price target.