In a report released on January 6, Alessio Olmi from TP ICAP MIDCAP maintained a Buy rating on Italian Wine Brands S.p.A., with a price target of €33.60.
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Alessio Olmi has given his Buy rating due to a combination of factors tied to Italian Wine Brands S.p.A.’s recent strategic moves and financial outlook. The completion of the Valle Talloria asset sale to Caffo Group for roughly €9.5m allows the company to convert a non-core, no-longer-strategic facility into immediate cash, while also simplifying its industrial setup and improving cost efficiency. The transaction provides a €9.1m cash inflow at closing, which is expected to push 2025 year-end net debt below €70m, thereby reinforcing the balance sheet and giving the group more financial flexibility. Management now has additional room to deploy capital into value-accretive uses such as higher dividends, expanded share buyback programs, or bolt-on acquisitions, all supporting the long‑term equity story.
Olmi also highlights that this disposal amplifies Italian Wine Brands’ already solid cash generation profile. The estimated free cash flow yield for 2025 is about 13%, and when the proceeds of the Valle transaction are included, this yield climbs to roughly 17.4%, underscoring the stock’s attractive cash-return potential relative to its market valuation. Such a level of free cash flow, combined with a leaner industrial footprint after years of rationalization under the “One Company” program, strengthens the company’s ability to create value for shareholders over the medium term. In this context, maintaining a target price of €33.6 and a Buy recommendation reflects Olmi’s conviction that the current share price does not fully reflect the improved financial profile and future growth options unlocked by the sale.