In a report released yesterday, Gianluca Mozzali from Corporate Family Office SIM upgraded Monnalisa SpA to a Buy, with a price target of €1.10.
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Gianluca Mozzali has given his Buy rating due to a combination of factors tied to Monnalisa’s ongoing turnaround and valuation appeal. The company is beginning to benefit from its restructuring, with Wholesale revenues outperforming expectations and e-commerce growing at a double-digit pace, while the deliberate downsizing of the Retail network is improving the quality of sales.
At the same time, profitability is recovering faster than anticipated, as cost-efficiency measures have driven a sharp increase in EBITDA margins despite slightly lower revenues, and net financial position is gradually improving thanks to better working capital management and the recent capital increase. With a DCF-based target price of €1.10 per share remaining well above the current market price, he sees substantial upside potential, although he flags geopolitical tensions in the Middle East as a notable risk to the outlook.
MNL’s price has also changed moderately for the past six months – from EUR0.980 to EUR0.836, which is a -14.69% drop .