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LU-VE: Solid Growth Momentum, Improving Margins and Data Centre Focus Underpin Reiterated Buy Rating and €45 Target Price

LU-VE: Solid Growth Momentum, Improving Margins and Data Centre Focus Underpin Reiterated Buy Rating and €45 Target Price

In a report released yesterday, Alberto Francese from Intesa Sanpaolo maintained a Buy rating on LU-VE SpA, with a price target of €45.00.

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Alberto Francese has given his Buy rating due to a combination of factors linked to LU-VE’s solid operating momentum and outlook. The company closed 2025 with accelerating topline growth in the fourth quarter, a sharp rise in order intake driven by industrial cooling and data centre projects, and double-digit quarterly growth in both its Components and Cooling Systems divisions.

In addition, profitability and balance sheet metrics have improved, with higher prices and volumes lifting the adjusted EBITDA margin and cash generation bringing leverage down to comfortably low levels. Management’s 2026 strategy, focused on data centres, industrial applications, recovering heat pumps and nuclear-related demand, supports Intesa Sanpaolo’s slightly higher margin assumptions and underpins a DCF-based target price of EUR 45, justifying the reiterated Buy recommendation.

In another report released on March 17, Intermonte also maintained a Buy rating on the stock with a €47.80 price target.

LUVE’s price has also changed slightly for the past six months – from EUR35.250 to EUR37.000, which is a 4.96% increase.

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