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Monnalisa SpA: Hold Rating Amid Strategic Transition and Market Challenges

Monnalisa SpA: Hold Rating Amid Strategic Transition and Market Challenges

Gianluca Mozzali, an analyst from Corporate Family Office SIM, maintained the Hold rating on Monnalisa SpA. The associated price target is €1.10.

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Gianluca Mozzali has given his Hold rating due to a combination of factors impacting Monnalisa SpA’s financial performance and strategic direction. The company is undergoing a significant transformation towards a leaner business model, which is expected to yield benefits by 2026. However, the current market conditions remain challenging, with a declining top line attributed to the contraction in the markets where Monnalisa operates and the closure of underperforming retail stores.
Despite efforts to streamline operations and improve net financial positions, Monnalisa’s revenues and EBITDA have seen notable declines. The wholesale segment, in particular, has been adversely affected by geopolitical instability, leading to a significant drop in sales. While the e-commerce channel has shown growth, it is not enough to offset the overall revenue decline. The updated price target aligns closely with the current market price, justifying the Hold rating as the company navigates through its strategic transition.

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